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2021 (6) TMI 890 - AT - Income TaxDisallowance of opening balance of sundry creditors - Second statutory appeal - HELD THAT:- Purchases made from creditors were in earlier year payments were made through banking channel and same are part of paper book and ledger account of creditors along with statement of purchases are part of paper book. ITAT Delhi Bench in the matter of Smt. Sudha Loyalka [2018 (7) TMI 1892 - ITAT DELHI] where A.O. made addition to assessee's income under section 69C in respect of amount payable to creditors towards purchases, in view of fact that said purchases were duly recorded in books of account and sales made against those purchases were not disputed, impugned addition was to be set aside. ITAT held no addition could be made under section 41(1) in respect of unexplained purchases where amount was shown as payable in balance sheet and thus there was no cessation of liability. Respectfully following the Jurisdictional High Court order in DATTATRAY POULTRY BREEDING FARM PVT LTD [2018 (12) TMI 1636 - GUJARAT HIGH COURT] and parity with the Delhi ITAT order and sales were not disputed by the lower authorities, so in view of the above, we allow this ground of appeal. Notional short term capital gain on transfer or otherwise of some real estate asset - Addition of short term capital gain erroneously considered by the appellant in computation of total income - Contention of the ld. A..R. was that assessee moved an application u/s. 154 of the Act stating that he has inadvertently made the claim of capital gain and explained all the details pertaining to property - HELD THAT:- The present Assessee's case is of assessment year 2014-15 and after going through the sale deed we have noted that property was sold on 19.08.2019 and in his balance sheet assessee has shown it as an investment not as a closing stock and same is part of paper book at page no. 5. Since assessee inadvertently shown the property as capital asset and moved an application before the lower authority u/s. 154 for rectification of the order but ld. A.O. did not pay and any heed and same property was shown as investment in the individual balance sheet of the assessee. In such case notional capital gain cannot be added. Thus this ground of appeal of the assessee is allowed.
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