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2021 (12) TMI 759 - ITAT BANGALOREAddition u/s 68 - bogus creditors - HELD THAT:- There is a valid confirmation letter and the outstanding is on account of purchases from that company and the AO cannot doubt the genuineness of the transaction and capacity of the lender. Being so, the CIT(Appeals) has taken a correct view of facts of the case and accordingly this ground of the revenue is dismissed. With regard to the addition on account of purchase payable, the CIT(Appeals) observed that the assessee has filed complete list with names of parties and the amount outstanding from the various parties and most of the creditors are below ₹ 5 lakhs. According to the CIT(A), these credits are genuine and outstanding on account of purchases - these purchases ought to have been verified individually so as to satisfy the identity, creditworthiness and genuineness of the transactions which the CIT(Appeals) failed to do so. In view of this, we remit this issue to the file of the AO for fresh consideration - Revenue’s appeal is partly allowed for statistical purposes.
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