2020 (6) TMI 151 - AT - Income Tax

Addition of sundry creditors - HELD THAT - Assessee could not provide suitable explanation with respect to differences in the cases of 15 parties. Appellant s claims that debit note was issued has not been established as neither party has submitted the debit note neither there is no posting of debit note in their ledger account and the amount of debit balance is Nil in the ledger account of the party. As such, there is no basis in the claim of Appellant. - Decided against assessee.

Summary

Issues:
1. Addition of ?4,89,081/- out of ?6,80,696/-.
2. Addition of ?11,10,334/- out of sundry creditors of ?12,15,959/-.

Analysis:
1. The appeal was against the CIT(A)'s order for A.Y 2012-13. The first issue was the addition of ?4,89,081/- out of ?6,80,696/-, and the second issue was the addition of ?11,10,334/- out of sundry creditors of ?12,15,959/-.
2. Despite notice, the assessee did not appear, leading to an ex parte decision. The Assessing Officer disallowed amounts due to lack of reconciliation for 15 parties.
3. The CIT(A) called for a remand report and provided ample opportunities for the appellant to reconcile. However, discrepancies remained in the accounts of various parties.
4. The CIT(A) found that some creditors had reconciled their accounts, but in many cases, no reconciliation was provided by the appellant. The onus was not discharged, leading to sustained disallowances.
5. Regarding sundry debtors, some parties submitted replies, but discrepancies persisted. The CIT(A) found no basis for the appellant's claims in several instances, leading to sustained disallowances.
6. The ITAT upheld the CIT(A)'s findings, stating no error or infirmity was found. Consequently, the appeal was dismissed on 04.03.2020.