Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2019 (4) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (4) TMI 1374 - ITAT DELHIUnverified purchases u/s 37 - HELD THAT:- The assessee has failed to furnish supporting documents to prove the genuineness of sundry creditor. The submission of assessee for making sale and cash payments to it in subsequent FYs. has remained unsubstantiated and is without documentary evidence. It is strange that on one hand that the AR states that there addresses are not available as the creditors are old on the other hand it is claimed that cash payments and sales have been made to them. In the circumstances it was rightly held by the CIT(A) that the AO was justified to make addition of ₹ 10,64,650/-, hence, he confirmed the same as on account of unverified purchases u/s 37 of the Act, which does not need any interference on my part, hence, uphold the action of the Ld. CIT(A) on the issue of dispute and reject the ground raised by the assessee. Unexplained creditors - these creditors have been created on account of purchases made in FY 2008-09 and have been brought forward since then - on one hand the AR states that there addresses are not available as the creditors are old on the other hand it is claimed that cash payments have been made to them - HELD THAT:- It is revealed from these facts that the assessee has obtained benefit by cessation of these liabilities as there is no evidence on record to show that these creditors have even made claim to recover the outstanding balances from the assessee. It is not relevant that assessee, has shown these credits payables in its books of account, during the year. The overall facts of the case and surrounding circumstances are enough to show that these credit balances have not been claimed by these creditors and thus there is cessation of liability on this account. In the circumstances, Ld. CIT(A) has rightly held that AO was justified to make additions , hence, he confirmed the same u/s. 41(1) of the Act, which does not need any interference on my part, hence, uphold the action of the Ld. CIT(A) on the issue of dispute and reject the ground no. 2 raised by the assessee.
|