9911796707
TMI Blog2021 (12) TMI 1169X X X X Extracts X X X X X X X X Extracts X X X X ..... ind force in the submissions of Shri S.M. Surana. We find from the discussion supra and after going through the records especially the details of sundry creditors and sundry debtors, we are of considered opinion that the A.O has taken a plausible view in the facts and circumstances of the case. And at any rate the action of the A.O in the given facts cannot be held to be unsustainable in law. So, therefore, the action of the A.O in not drawing any adverse inference in respect of sundry creditors in the given facts should not have been interfered by Ld. PCIT exercising his revisional jurisdiction u/s. 263 - the action of the Ld. PCIT to interdict when the A.O has discharged his duty as an investigator as well as that of the adjudicator as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 15.05.2018, copy of the same is found placed at page 3 to 10 of the paper-book. From a perusal of the same, we note queries regarding the issue of sundry creditors were raised by the A.O and he had asked for the list of names, address of sundry creditors for A.Y 2015-16 which is item No. (f) [the Ld. PCIT has reproduced the ibid notice at page 2 of the impugned order]. Thereafter going through the replies of the assessee filed at page 10 and after going through the books of the assessee, Form No. 26AS audit report along with the Trading and Profit Loss A/c as well as balance sheet on 31.03.2016 and other documents called for, and after hearing the AR of the assessee, the A.O has made an observation in respect of the sundry creditors as un ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... genuineness of the sundry creditors was furnished by the assessee. The A.O accepted the explanation of the assessee without examining or enquiring into the genuineness of the sundry creditors. The A.O was required to at least conduct enquiries/verifications regarding the genuineness of the sundry creditors relevant to the Assessment Year in question. And thereafter the Ld. PCIT was pleased to set aside the order of the A.O dated 26.06.2018 and directed him to frame fresh assessment on this issue. Aggrieved by the aforesaid action, the assessee is before us. 5. We have heard both the parties and perused the records. In order to examine whether the Ld. PCIT had successfully invoked the revisional jurisdictional u/s. 263 of the Act or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 0/- and this amount (₹ 1,86,05,800/-) would be disbursed/discharged when the assessee receives the payment due from the principal which is shown as sundry debtors to the tune of ₹ 1,71,81,900/- along with security deposit of ₹ 16,60,500/- (which is shown in the right hand side of the balance sheet). These facts are discernible from the perusal of page 17 of paper-book wherein the Profit Loss A/c and balance sheet has been placed. The Ld. AR also drew our attention to the labour account of sundry creditors from 01.04.2015 to 31.03.2016 at pages 27 to 32 of paper-book; and details of sundry creditors' accounts from 01.04.2015 to 31.03.2016 at pages 33 to 36 of paper-book. He has also drew our attention to the ledger ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ns. This action of the A.O was reversed by the ITAT by observing that This is a case, where the books are not out-rightly rejected, there is no adverse inference drawn regarding quantum of purchases or sales and even the purchase accounts of the sundry creditors have not been disturbed. The assessee maintained regular books of account including stock register which also has not been negated. The Assessing Officer had not disallowed the purchases from those creditors nor the trading results were disturbed . After this observation, the ITAT held that since the sales, purchases as well as gross profits as disclosed by the assessee have been accepted by the A.O then the sundry creditors cannot be added u/s. 68 by holding it as bogus. This acti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the books of accounts of the assessee to be rejected. By not directing so, the Ld. PCIT has accepted the gross receipt of ₹ 2.73 crores and cost of ₹ 2.62 crores while doubting the sundry creditors without even doubting the sundry debtors of like amount. So therefore, according to the Ld. AR the action of the A.O to have accepted the explanation given by the assessee after going through the ledgers of the sundry creditors and sundry debtors as well as the balance sheet as well as profit loss filed by the assessee is a plausible view, so the Ld. PCIT ought not to have interfered with it. We find force in the submissions of Shri S.M. Surana. We find from the discussion supra and after going through the records especially the de ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
