TMI Blog2015 (6) TMI 1024X X X X Extracts X X X X X X X X Extracts X X X X ..... that the Assessing Officer may call upon the assessee to adduce evidence in the form of producing such parties. For the assessment year 2004-05, the matter was restored back to the file of the Assessing Officer in respect of the addition representing the closing balance of fifteen creditors with the liberty being granted to the assessee as well as the Assessing Officer as granted for the assessment year 2003-04. Addition u/s 69C - Held that:- The assessment order would also indicate that in respect of the sundry creditors as reflected in the balance-sheet of the assessee was not proved by the assessee though sufficient opportunity was granted. The order of the Assessing Officer does not indicate about any explanation having called for b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... x (Appeals) deleting the addition made under section 68 of the Act came to be set aside and the matter has been remitted to the Assessing Officer to examine the addition representing the closing balance of 15 creditors on confirmations being filed by the assessee and to pass orders thereunder. 2. This court by order dated December 18, 2009, has admitted the appeal to consider the following substantial questions of law : (1) Whether the Tribunal was justified in law in upholding the application of section 68 in respect of trade credits outstanding at the end of the year on account of purchases, when the purchases have not been disputed and the trading results have been fully accepted and also the outstanding credits have been confirm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tors assessed under section 68 of the Income-tax Act, 1961 (for short the Act ). 6. Being aggrieved by these assessment orders, the assessee preferred appeals before the Commissioner of Income-tax (Appeals). For the assessment year 2003-04, the Commissioner of Income-tax (Appeals) deleted the entire addition made by the Assessing Officer except for ₹ 6,00,000 pertaining two sundry creditors and for the assessment year 2004-05 the entire addition made by the Assessing Officer was deleted by order dated December 18, 2007. 7. The Revenue being aggrieved by these orders filed an appeal before the Income-tax Appellate Tribunal (for short the ITAT ) contending that the addition made by the Assessing Officer under section 68 of the A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... w, it would be necessary to state the facts in brief which has led to the filing of these two appeals. 9. For the assessment year 2003-04, the assessee has declared a gross profit of ₹ 5,97,168 on the total sales of ₹ 7,23,69,380. It was noticed by the Assessing Officer that the assessee had shown liability of ₹ 81,91,755.80 towards sundry creditors in the balance-sheet. Hence, a communication was forwarded to those sundry creditors under section 133(6) of the Act by the Assessing Officer calling upon them to either furnish the copy of the accounts for the financial year 2002-03 as appearing in their books or to confirm the amount outstanding. Some of the creditors denied the business transaction of the assessee and som ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts order, vide paragraph 2.37, has remitted the matter back to the Assessing Officer for the reasons indicated thereunder and to examine the matter in the background of directions issued therein. 10. Likewise, for the assessment year 2004-05, the addition of ₹ 49,48,475 made by the Assessing Officer towards unproved sundry creditors, vide assessment order dated December 28, 2006, came to be deleted in its entirety by the Commissioner of Income-tax (Appeals) on the ground that the Assessing Officer has neither disputed the purchases nor sales amongst other grounds as indicated in the order dated December 18, 2007. The Income-tax Appellate Tribunal, vide paragraph 4.3, has remitted the matter back to the Assessing Officer as already ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... found on factual scrutiny that the sundry creditors indicate in the books of account of the assessee was not proved in its entirety and the same being question of fact it was required to be examined by the Assessing Officer and thereby reserving liberty to the Revenue as well as the assessee to prove the genuineness of sundry creditors has remitted the matter to the jurisdictional Assessing Officer. 13. The assessment order would also indicate that in respect of the sundry creditors as reflected in the balance-sheet of the assessee was not proved by the assessee though sufficient opportunity was granted. The order of the Assessing Officer does not indicate about any explanation having called for by the Assessing Officer from the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X
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