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2020 (6) TMI 562 - AT - Income TaxAddition on account of Sundry Creditor merely for want of PAN of those sundry creditors - HELD THAT:- In compliance to the summon issued u/s 131 of the Income Tax Act, 1961, three creditors namely: Shri Nayanmoni Das, Shri Jagadish Das and Shri Shankarlal Agarwal appeared before the assessing officer on 08.12.2016 and 09.12.2016. They were examined and separate statements under section 131 on oath recorded and placed on record by the assessing officer. These three persons also filed before the assessing officer the requisite details and documents as called for by summon issued under section 131 - AO failed to demonstrate any defect in the documents and evidences adduced before him by these creditors. Out of total creditors which were alleged by the AO to be not genuine, as sum pertain to preceding previous years which have been verified by the AO in the preceding previous years, therefore genuineness of these creditors should not be doubted. All the creditors of the assessee are his regular vendors and transactions with them are genuine business transactions and these transactions with them had been undertaken wholly and exclusively for the purposes of the business activities. We note assessee's accounts are audited and not rejected by the AO therefore to estimate the separate profit in addition to profit shown in the audited books of accounts is not tenable without any tangible material or corroborative evidence. We note that since the assessment year under consideration is 2014-15 therefore furnishing of PAN number is not mandatory as per Rule 115B of the Income Tax Rules, vide entry No. 18, which came into force with effect from 1stJanuary, 2016. Based on the factual position,as narrated above, we are of the view that the assessee has proved the identity, creditworthiness and genuineness of the creditors, therefore we delete the addition. - Decided in favour of assessee.
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