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2023 (1) TMI 703 - ITAT VISAKHAPATNAMAddition of sundry creditors - controversial statements given by the 7 sundry creditors in the statement recorded from them on oath - HELD THAT:- The Ld. AR could not justify as to why the Ld. AO questioned only 7 creditors out of the total 69 creditors where the sample is not proportionate to the total amount of outstanding creditors. It is also seen from the order of the Ld. AO that the 7 creditors has given standard replies as argued by the Ld. DR which cannot be relied upon. The onus is on the assessee to prove that the creditors are genuine with supporting evidences and confirmation from creditors. In the instant case, the assessee has failed to produce convincing replies with cogent evidences even for the random sample selected by the Ld. AO. AO is being directed to verify the 69 creditors with regard to outstanding payables from all the sundry creditors and provide one more opportunity to the assessee following the principles of natural justice. Accordingly, we remit the matter back to the file of the Ld. AO and allow this ground no.2 for statistical purposes. Allowance of telescoping against the cash deposits - HELD THAT:- We are of the considered view that the Ld. CIT(A) has rightly considered the telescoping benefit and therefore we find no infirmity in the order of the Ld. CIT (A) on this issue and hence, this ground raised by the Revenue is dismissed.
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