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TMI Blog2017 (6) TMI 173X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Act are opening balances of the creditors and if that is so, then directed to decide the issue in view of our finding above. If the credits pertain to the year under consideration, then the action should be taken in terms of section 68 of the Act, following the finding of the Tribunal in the case of M/s. Gupta Metal Sheet Pvt. Ltd. (2016 (4) TMI 504 - ITAT DELHI). It is needless to mention that assessee shall be afforded reasonable opportunity of hearing. Accordingly ground of the appeal is allowed for statistical purpose. X X X X Extracts X X X X X X X X Extracts X X X X ..... sic ingredients* to be met by the assessee viz. the proving of the identity, the genuineness of the transaction and credit-worthiness of the creditors. Now going by the contention of the assessee that an ITI had been deputed to make necessary inquiry, to my mind merely points the existence of the concerned party. In other words identity of the concerned party can be said to be proved, even though no details of PAN; copy of return income/ balance-sheet etc were provided. The - other ingredients, whether fulfilled or not, requires to be seen from the facts as emerging from the records. The Inspector of Income Tax had obtained bank statements and other documents. The AO noted that from the bank statements it was apparent that withdrawals were ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... acts are different and the AO was right in raising a presumption as the explanations put forth by the assessee was not satisfactory. Therefore, considering the facts of the case, the addition made by the AO is confirmed." 4. Before us, the Ld. counsel of the assessee submitted that the additions made are opening balances of the sundry creditors and same cannot be made in the year under consideration. The Ld. consul further relied on the order of the Tribunal in the case of M/s Gupta metal sheet private limited in ITA No. 1926 /Del/2013 for assessment year 2010-11, wherein the Tribunal has restored the matter back to the Assessing Officer for verification whether credits pertains to the assessment year in consideration or not. The ld. coun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as failed to discharge its Burdon of proof for requirement of section 68 of the Act regarding the creditor. In view of the facts and circumstances, we are of the opinion that in the interest of justice, the assessee should be provided one more opportunity to discharge its burden of proof in respect of the creditor. Accordingly, we restore the matter to the file of the Assessing Officer for deciding the issue afresh in accordance to law. Needless to mention that the assessee shall be provided sufficient opportunity of being heard. As regards to the third proposition of the Id AR that the provision of section 68 of the Act are not applicable over the purchases, in view of the judgment of the CIT Vs Panchamdas Jain (supra), is concerned, we fi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e present appeal, the Assessing Officer or the Ld. CIT-A, in their orders has not given finding whether the credits in question pertain to the year under consideration or pertain to earlier years. In our view, If the credits in question pertained to earlier years, no addition could have been made in the year under consideration. In the facts and circumstances of the case, we feel it appropriate to restore the issue to the file of the Assessing Officer for verification, whether the amount added under section 68 of the Act are opening balances of the creditors and if that is so, then directed to decide the issue in view of our finding above. If the credits pertain to the year under consideration, then the action should be taken in terms of se ..... X X X X Extracts X X X X X X X X Extracts X X X X
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