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2023 (7) TMI 1078 - AT - Income TaxAddition u/s 68 - assessee failed to explain the genuineness of the sundry creditors - HELD THAT:- Assessee has successfully demonstrated before us about the genuineness of the transactions with the sundry creditors with the help of the facts that there was a steep increase in the purchase and sale, as well as sundry creditors and debtors during the year and amount more than the alleged sundry creditors was outstanding to be received from the sundry debtors and in the subsequent year on the realization of the sundry debtors, most of the alleged sundry creditors have been paid which is reflected from the fact that sundry creditors which was standing due at Rs. 3.99 Crores, during the financial year 2014-15, came down to Rs. 1.34 Crores and remained paid subsequently. Since the assessee has successfully explained the source and identity of sundry creditors, nature and genuineness of the transactions, proved that the payments to the sundry creditors have been made and since the revenue has not doubted the genuineness of the sale and correctness of the book results, we do not find any justification in the action of the Assessing Officer in making the addition u/s 68 - set aside the finding of the ld. CIT(A) and delete the addition made u/s 68 - Decided in favour of assessee.
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