2022 (3) TMI 1234

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..... ppears to be arbitrary and is found to be not supported with cogent reasons and material. In view of the above, addition cannot be upheld and the same is deleted. Accordingly, the above grounds of appeal of appeal are allowed.
Sh. Saktijit Dey , Judicial Member And Dr. B. R. R. Kumar , Accountant Member For the Appellant : Umesh Takyar , Sr. DR For the Respondents : Sourav , CA ORDER Dr. B. R. R. Kumar , Accountant Member The present appeal has been filed by the Revenue against the order of the ld. CIT(A)-10, New Delhi dated 14.09.2018. 2. The order of the ld. CIT(A) reads as under : 3. The assessment order and the written submission have duly been considered. On perusal of details, it is noticed that the sundry creditors were in .....

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..... also noted that the AO did not specify his notice u/s. 142(1) issued on 19.12.2017 the details of sundry creditors in respect of which he had adverse finding. It is also observed that the appellant could not put forth a satisfactory reply and did not furnish the ITRs of the concerned parties in order to establish their lending capacity. The AO has observed that - "Hence appropriate disallowance in this regard has to be made". He has proceeded to add a sum of ₹ 3,68,85,701/- u/s. 68 of the Act under the head 'unexplained credit' with the observation that such credits were not verifiable. The AO did not provide opportunity of being heard to the appellant in respect of the above addition. On perusal of the submissions .....

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..... yments have been made to the aforesaid parties by cheque. On perusal of details furnished it is noticed that the creditors have shown the following income in their ITRs: i) Atiksh Trading Co. Pvt. Ltd. ₹ 5,03,760/-. ii) Jayashree Mills (Prop. M. Sadashivam) ₹ 14,85,980/-. iii) Moorthi Fashion (Prop. K.V. Palaniappan) ₹ 10,86,620/-. iv) Narayan Impex (Prop. Mohit Agarwal) ₹ 8,83,170/-. v) Rahul Fashion (Prop. Meena Gupta) ₹ 3,34,910/-. vi) Rainbow Enterprises (Prop. S.K. Goyal) ₹ 8,02,820/-. vii) Shree Senthil Mills (Prop. P.S. Nathan) ₹ 16,37,660/-. viii) Vaishnavi Fabrics (Prop. Kusum Gupta) ₹ 3,44,320/-. ix) Vinayak International (Prop. Mukesh K. Gupta) ₹ 5,08,920/-. .....

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