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2023 (6) TMI 126 - AT - Income TaxAdditions on account of sundry creditors - notices being issued to companies had failed to respond and gave confirmation of the outstanding credits - CIT-A deleted the addition - HELD THAT - The order of ld. CIT(A) has showed that additional evidence was admitted and remand report was called from Ld. AO wherein no adverse comments was made with regard to reconciliation of account of STC, MMTC and PEC was given. Further the matter of fact is that all these three enterprises are public sector undertakings. Thus, the opinion of Ld. CIT(A) based upon the evidence before it and the aforesaid fact of the parties being Public Sector Undertakings to delete the additions on account of sundry creditors requires no interference. The appeal of revenue is dismissed.
Issues involved: Appeal by Revenue against CIT(A) order u/s 143(3) of the Income Tax Act, 1961 regarding outstanding credits from public sector undertakings.
Summary: Issue 1: Failure of Assessee to Appear The appeal was filed by the Revenue against the CIT(A) order regarding outstanding credits. Despite repeated notices, the assessee did not appear for the hearing, and the notices were returned with the report of 'no such person existing at the address.' Issue 2: Arguments and Considerations The arguments of the DR were heard, supporting the Ld. AO's orders. It was submitted that the CIT(A) failed to consider that the companies in question failed to respond to the notices and confirm the outstanding credits. Issue 3: Additional Evidence and Decision The CIT(A) admitted additional evidence and called for a remand report from the Ld. AO. The reconciliation of accounts of the public sector undertakings was found to be satisfactory, with no adverse comments in the remand report. Considering the evidence and the fact that the parties were public sector undertakings, the CIT(A) decided to delete the additions on account of sundry creditors, leading to the dismissal of the Revenue's appeal. This judgment was pronounced in the open court on 1st June 2023.
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