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2018 (10) TMI 260 - ITAT KOLKATAAddition in respect of sundry creditor balance u/s 68 - Held that:- Assessee has furnished entire requisite details together with the bills and vouchers and all the supporting documents in support of the claims made in the return of income, which fact has been acknowledged by the ld. AO in his assessment order. We also find that the said supplier Mr. Jaharlal Ghosh in response to notice issued u/s 133(6) of the Act had replied before the ld. AO vide his letter dated 15.11.2013 confirming the fact of supply of materials to the assessee during the financial year 2010-11 and had also confirmed the fact that some amount was receivable from the assessee for such supply of materials. It is factually incorrect on the part of the ld. AO to conclude that the said trade creditor had confirmed Nil balance as on 31.03.2011 as amount receivable from the assessee. Hence it could be safely concluded that the AO had proceeded to make an addition by treating the concerned sundry creditor as bogus based on incorrect assumption of facts - no addition could be made u/s 68 in respect of a trade creditor. AO had not disputed the purchase of materials made by the assessee from the said sundry creditor and hence the corresponding credit entry i.e. credit to the account of the sundry creditor cannot be doubted by the ld. AO. Thus we direct the ld. AO to delete the addition - Decided in favour of assessee.
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