TMI Blog2021 (8) TMI 172X X X X Extracts X X X X X X X X Extracts X X X X ..... as CIT(A). The assessee has demonstrated the genuineness of the creditors. Therefore, the CIT(A) was not right in confirming the addition that of Sundry Creditors. Addition of advances from customers the remand report has not disputed the confirmations received from the creditors and the advances obtain was a genuine loan from the customers - HELD THAT:- Assessee has establish genuineness of all the transactions, identity of creditors and source of the funds received. Assessing Officer has totally ignored all these facts while filing the remand report on the contrary he has acknowledged that to establish genuineness, identity and creditworthiness. The assessee has filed the documents which are relevant to these three factors - CIT(A) h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appeal are as under:- 1. That, a facts and in the circumstance of the case, Commissioner of Income tax (Appeal)-X, New Delhi erred both on facts and on law in confirming the addition of Rs.l,28,02,536/-as sundry creditors made by I.T.O. Ward 7 (4), New Delhi, with and considering the confirmatory letters which were filed during the remand proceeding before I.T.O. 2. That, a facts and in the circumstance of the case, Commissioner of Income tax (Appeal)-X, New Delhi erred both on facts and on law in confirming the addition of ₹ 24,13,787/- as advance from customers made by I.T.O. u/s 68 of I.T.Act with and considering the confirmation filed during the remand proceeding before I.T.O. 3. That, a facts and in the circumst ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . The Assessing Officer further observed that balance sheet filed by the assessee company reflects an amount of ₹ 2,46,33,326.97 under the current liabilities. Schedule G shows an amount of ₹ 1,77,92,311/- as sundry creditors. Details submitted by the company shows that ₹ 1,35,34,316/- pertain to last to last years and it is also evident from the details filed that there has been no transactions with the creditors of ₹ 1,28,02,536/- during the year under consideration. Therefore, the Assessing Officer disallowed ₹ 1,28,02,536 and added in the income of the company as bogus liability created by the assessee company. Further, the Assessing Officer observed that the assessee company also shows an amount of ₹ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat he has received confirmation from all the creditors which was not at all disputed in the Remand Report by the Assessing Officer. Thus, the assessee established genuineness of all the transactions, identity of creditors and the source of the fund received. As regards to Ground No. 3 relating to credit balance in current account of ICICI Bank to the extent of ₹ 19,78,909, the Ld. AR submitted that the Assessing Officer has confirmed in his remand report dated 18.07.2012 before the CIT(A) that a confirmation of the bank is in record to justify the point of the assessee. Hence, the assessee has established genuineness of all the transactions, identity of the creditors and the source of the fund received. The Ld. AR relied upon the fol ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o Ground No. 5 relating to discount of ₹ 5,67,287/-, the Ld. AR submitted that the Assessing Officer confirmed in remand report that the assessee company s director submitted satisfactory clarification. As regards to Ground No. 6 relating to expenses of ₹ 3,13,682, the Ld. AR submitted that the assessee company s director submitted satisfactory clarification and Ld. AR also placed before us the vouchers for the expenses for A.Y. 2007-08. The Ld. AR relied upon the decision of the Hon ble Delhi High Court in case of CIT vs. Dalmia Cement Pvt. Ltd. 254 ITR 377. 6. The Ld. DR relied upon the assessment order and the order of the CIT(A). The Ld. DR submitted that as regards Ground No. 1, the Assessing Officer as well as the CIT(A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t of Sundry Creditors. Hence, Ground No. 1 is allowed. 8. As regards Ground No. 2, in respect of addition of advances from customers the remand report has not disputed the confirmations received from the creditors and the advances obtain was a genuine loan from the customers. Hence, the assessee has establish genuineness of all the transactions, identity of creditors and source of the funds received. The Assessing Officer has totally ignored all these facts while filing the remand report on the contrary he has acknowledged that to establish genuineness, identity and creditworthiness. The assessee has filed the documents which are relevant to these three factors. Hence, the CIT(A) has ignored the evidences and simply confirm the additions ..... X X X X Extracts X X X X X X X X Extracts X X X X
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