HC held that the CIT(A)'s order directing deletion of additions ...

Unexplained Sundry Creditors Additions Struck Down: Procedural Flaws Invalidate Tax Authority's Amendment Under Section 154

April 17, 2025

Case Laws Income Tax HC

HC held that the CIT(A)'s order directing deletion of additions relating to unexplained sundry creditors was valid. The AO's amendment under Section 154 was procedurally flawed as no notice was issued to the assessee, violating statutory requirements of Section 154(3). The court found a clear violation of natural justice principles by not providing an opportunity of hearing. Consequently, the order dated February 7, 2025 was set aside, and the authorities were directed to implement the previous order dated January 3, 2024 within four weeks, effectively reinstating the original appellate order deleting the contested additions.

View Source

← Previous Next →

HC held that the CIT(A)'s order directing deletion of additions ...

Unexplained Sundry Creditors Additions Struck Down: Procedural Flaws Invalidate Tax Authority's Amendment Under Section 154

April 17, 2025

Case Laws Income Tax HC

You may also like:

Addition u/s 68 - Unexplained sundry creditors - CIT(A) deleted the additions - if we presume that the basis adopted by the CIT(A) is correct then also the nature and...

The ITAT Kolkata held that the addition on a protective basis made by the Assessing Officer in the hands of the assessee, concerning a loan received from a director and...

Legality of order passed U/s 147 - addition on account of alleged unexplained sundry creditors - AO should have collected the information from the creditors directly to...

Addition u/s 68 OR 41(1) - unexplained cash credit - Cessation of liability - The appellant contested additions to their income, alleging bogus sundry creditors. Despite...

Addition u/s 41(1) - outstanding balances of sundry creditors and other liabilities - Unconfirmed bill, advance from customers and sundry creditors which are static...

Addition u/s. 41 (1) or u/s 68 - no reply by sundry creditors u/s 133(6) - AO has accepted purchases as genuine and the amount outstanding in the name of sundry...

Addition on account of section 68 - Unexplained sundry creditors - adoption of 1% Net profit on the turnover for various assessment years will be reasonable and will...

Addition of unexplained cash credit u/s 68 - Due to existing disputes with the parties by the sister concerns of the assessee, the assessee could not procure the...

Addition u/s 68/41 - old sundry creditors - opening balance of advances for booking and another sundry creditor - there is no ground of appeal raised by the revenue for...

Addition u/s 68 / 69C - unverified/non-existent /bogus sundry creditors - Assessee also cannot get scot free by not producing the sundry creditors and making purchases...

Addition u/s 68 - outstanding sundry creditors - the said sundry creditors were paid in the subsequent year through banking channels and that the assessee has had...

Addition u/s 41(1) - Unexplained sundry creditors and advance from customers - No addition can be made under section 41(1) of the Act merely on the basis of doubting the...

Addition on account of Sundry Creditor merely for want of PAN of those sundry creditors - since the assessment year under consideration is 2014-15 therefore furnishing...

Company struck off from Register of Companies u/s 248(5) of Companies Act, 2013. Section 250 interpreted using golden rule of construction, allowing struck-off company...

The ITAT held: Long term capital gain was to be computed allowing deduction for indexed cost of acquisition and exemption u/s 54B. Addition u/s 68 for unexplained...

Quick Updates: