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2022 (4) TMI 539 - AT - Income TaxUnverifiable creditors - case of the assessee that the assessee tried his best to persuade the aforesaid creditors to appear before the Assessing Officer and verify the aforesaid credits - HELD THAT:- Assessee was not having control over the aforesaid creditors to compel their appearance before the Assessing Officer. On the other hand, AO had wide powers to compel the appearance of the aforesaid creditors before him but he failed to exercise that power. Counsel has also submitted that out of total addition on account of unverifiable creditors, an amount is pertaining to the earlier assessment year which has been brought forward as opening balance of the credits, which otherwise cannot be added back during the assessment year under consideration. Counsel has also relied upon the bank statements and copy of the ledger in the name of the assessee in the books of accounts of the aforesaid creditors and has further submitted that the assessee will produce the aforesaid two creditors before the AO. In our view, the interest of justice will be well-serve if the assessee is given an opportunity to produce the necessary evidences/creditors for the verification of the transaction in question. Impugned order of the ld. CIT(A) is set aside on this limited issue with a direction that the ld. CIT(A) will give an opportunity to the assessee to produce the evidences/creditors, if so required for the purpose of verification of genuineness of the transaction and creditworthiness of the creditors, thereafter the ld. CIT(A) will decide the issue afresh in accordance with law. Appeal of the assessee is treated as allowed for statistical purposes.
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