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TMI Blog2018 (2) TMI 1645X X X X Extracts X X X X X X X X Extracts X X X X ..... rmative. We are of the considered view that ld. CIT (A) has erred in sustaining the addition of ₹ 18,78,417/- claimed as deduction/s 80-IC of the Act by the assessee company, hence the same is ordered to be deleted. - Decided in favour of assessee. - ITA No.2323/Del./2014 - - - Dated:- 22-2-2018 - SHRI B.P. JAIN, ACCOUNTANT MEMBER AND SHRI KULDIP SINGH, JUDICIAL MEMBER For The ASSESSEE : Shri K. Sampath, Advocate For The REVENUE : Smt. Ashima Neb, Senior DR ORDER PER KULDIP SINGH, JUDICIAL MEMBER : The appellant, M/s. Avishakar Engineers (hereinafter referred to as the assessee company ) by filing the present appeal, sought to set aside the impugned order dated 29.01.2014 passed by Ld. CIT(Appeals) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at the assessee company is not engaged in any manufacturing activities rather assessee company is assembling various items viz. LPG gas stove body, pan supports, burner, pipe etc. and the assessee company has also admitted to have not manufactured any of the items used for manufacturing of LPG gas stove. Assessee company has also failed to prove the purchases of raw material from different parties as the parties from whom the raw material was purchased has not confirmed the same u/s 133 (6) of the Act. Consequently, AO assessed the total income at ₹ 38,35,760/-. 3. Assessee carried the matter by way of filing appeal before the ld. CIT (A) who has restricted the addition to ₹ 18,78,417/- by deleting the balance addition of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , confirmation was not received and as such, the assessee company has failed to prove the genuineness of the sundry creditors. 8. When trading results have been accepted by the AO as well as ld. CIT (A), it is difficult to accept as to how they have disputed the income earned by the assessee company. 9. During remand report, the assessee company relied upon numerous documents qua which the ld. CIT (A) has called for a remand report. After receipt of the remand report, the ld. CIT (A) deleted the addition of ₹ 18,91,582/- out of addition of ₹ 37,69,999/- made by the AO. CIT (A) confirmed the remaining addition of ₹ 18,78,417/- only qua two parties, namely, Prakash Trading Company from which credit of ₹ 18,67,037 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dered by the Third Member of the coordinate Bench of the Tribunal in ITO vs. Zazsons Exports Ltd. (2015) 153 ITD 1 (Lucknow-Trib.) and contended that merely on the ground that sundry creditors have not been verified they cannot be treated as bogus when there is no dispute with regard to the purchases and trading results have been accepted. Operative part of the decision rendered by the coordinate Bench of the Tribunal is reproduced as under :- Section 68of the Income-tax Act, 1961 - Cash credits (Sundry creditors) - Assessment year 2005-06 - Assessee company was carrying on business of export of finished leather and manufacture of shoe uppers and shoes - While framing assessment, Assessing Officer required assessee to furnis ..... X X X X Extracts X X X X X X X X Extracts X X X X
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