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Issues involved: Appeal against order of CIT(A)-LTU, Bangalore for the assessment year 2008-09 regarding deletion of additions under sundry creditors and annulment of assessment order due to late notice u/s 143(2).
Deletion of additions under sundry creditors: The appeal by Revenue and cross-objection by assessee were directed against the CIT(A)'s order deleting additions of Rs. 28,95,779 under sundry creditors for the assessment year 2008-09. The CIT(A) found that the increase in trade creditors was due to business growth, with confirmatory letters provided for major creditors. The AO failed to conduct independent inquiries and added the entire sum without proper reasoning. The CIT(A) upheld the deletion, emphasizing the need for speaking orders and application of mind. The Tribunal agreed, noting that all credits were trade credits, not cash, and confirmed trade creditors were provided for most of the amount. The Tribunal upheld the CIT(A)'s decision, dismissing the Revenue's appeal. Annulment of assessment order due to late notice u/s 143(2): The cross-objection by the assessee sought to annul the assessment order due to a notice u/s 143(2) being issued beyond the stipulated period. However, since the Revenue's appeal was dismissed, the cross-objection was deemed superfluous and dismissed as infructuous. Ultimately, both the Revenue's appeal and the assessee's cross-objection were dismissed by the Tribunal.
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