TMI Blog2016 (4) TMI 1347X X X X Extracts X X X X X X X X Extracts X X X X ..... mation of the creditor - this amount was shown as credit for the financial year 2005-06 and continued as carried forward till this year, then it would not be a case of credit entries in the books of account of the assessee during the year under consideration. Therefore, when no cash credit was entered into books of account during the year under consideration, then no addition u/s 68 can be made in respect of this amount of credit balance shown in the books of account. As regards the genuineness of the transaction is concerned, if the assessee failed to prove the existence of the liability in question then the addition can be made under the provisions of sec.41(1) or sec.28 of the Act and not u/s 68 - wet aside this issue to the reco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... furnished and the creditors continued to exist without any further business transaction. Therefore, the same was added back to the total income of the assessee. 2. The assessee challenged the action of the AO before the CIT(A) and contended that sundry creditors in question did not relate to assessment year under consideration. Therefore, no addition u/s 68 can be made when the assessee has not introduced these credits during the year under consideration. The assessee has relied upon the decision of the Hon ble Delhi High Court in the case of CIT vs. Usha Stud Agricultural Farm Ltd. (301 ITR 384). The CIT(A) did not accept the contention and explanation of the assessee and confirmed the addition made by the AO on this account. 3. Be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ndustrial Co. Ltd. furnished for FYs 2005-06, 2006-07 2007-08 shows that the transactions have started in FY 2005-06 and have continued in the two following years. The ledger account of SI International Company shows no transactions during FY 2007-08 against the opening balance of ₹ 1,37,860(Cr.) of 1.4.2007. Thus it is clear that the CIT(A) has recorded the fact that the assessee has claimed this amount being a brought forward balance in the ledger accounts of the creditors of M/s.Beijia Industrial Co. Ltd., and M/s.S.I.International Co.,. The AO made the addition on the ground that the assessee failed to produce the confirmation of the creditor. It is pertinent to note that this amount was shown as credit for the financial y ..... X X X X Extracts X X X X X X X X Extracts X X X X
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