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2012 (11) TMI 389 - ITAT, KOLKATAUnexplained Cash Credit u/s 68 – Held that:- When the assessee could not prove the sundry creditors, the same was liable to be added. further Purchase has been supported by bill and payments having been made, just because the sundry creditors for the supply of goods did not respond to the notices from the Assessing Officer, no addition was liable to be made nor accounts of the assessee was liable to be rejected and estimated addition by disallowing of purchase was liable to be made – Order of Commissioner of Income-tax (Appeals) was liable to be reversed. Rejection of books of account u/s 145 – Held that:- Rejection of Books by CIT(A) is on right footing and does not call for any interference. The revenue has also not been able to dislodge the reasons given by the learned Commissioner of Income-tax(Appeals) for rejection of books of account, which has resulted in estimation of addition @ 25% of the total purchases - AO has made the addition of sundry creditors, but the sundry creditors are, in fact, the trade creditors of the assessee on account of purchases made by the assessee, which the assessee is unable to substantiate with the proof. In the circumstances, the finding of the CIT(A) is liable to be upheld - In the circumstances, both the appeals of revenue and assessee stand dismissed.
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