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2024 (10) TMI 1626 - AT - Income TaxUnexplained cash credits u/s 68 - assessee failed to furnish the supporting evidences before AO - CIT(A) has deleted the addition holding that the assessee has duly submitted relevant proves like copy of account, copy of the bills, confirmations, proof of payment and VAT return and held that the Assessing Officer in his remand report has accepted the genuinenity of the transactions, therefore, no addition can be made out of the outstanding balances. HELD THAT - Since the remand report has categorically accepted by the genuinenity of the sundry creditors we hold that no addition can be made on the difference in the sundry creditors as alleged by the Assessing Officer. The order of the Ld. CIT(A) is hereby affirmed. Appeal of the Revenue is dismissed.
In the appeal before the Appellate Tribunal ITAT Ahmedabad, the Revenue challenged the order of the Ld. Commissioner of Income Tax (Appeals)-11, Ahmedabad, regarding the assessment year 2016-17. The primary issue was the deletion of an addition of Rs. 2,14,53,435/- made by the Assessing Officer under Section 68 of the Income Tax Act, concerning unexplained cash credits.
The Revenue contended that the Ld. CIT(A) erred in considering the cash credits as genuine, arguing that the assessee failed to provide supporting evidence to the Assessing Officer. However, the Ld. CIT(A) found that the assessee had submitted adequate documentation, including account copies, bills, confirmations, proof of payment, and VAT returns, which were examined in a remand report by the Assessing Officer. The remand report did not contain any adverse remarks or material against the sundry creditors, and the Assessing Officer accepted the genuineness of the transactions. The Tribunal, after reviewing the records and noting the absence of any adverse findings in the remand report, upheld the Ld. CIT(A)'s decision. It affirmed that no addition could be made on the outstanding balances of sundry creditors as alleged by the Assessing Officer. Consequently, the appeal by the Revenue was dismissed. The order was pronounced in open court on October 16, 2024.
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