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TMI Blog2022 (8) TMI 903X X X X Extracts X X X X X X X X Extracts X X X X ..... ors cannot be allowed for deletion of Section 68. So, accordingly, the addition is setting aside to the ld. CIT(A) for further adjudication considering the above-mentioned discussion of ITAT. Needless to mention that the assessee should get a reasonable opportunity for redressal of the grievance. Appeal of the Revenue is allowed for statistical purposes - ITA No. 3704/Mum/2018 - - - Dated:- 29-7-2022 - SHRI B R BASKARAN , ACCOUNTANT MEMBER And SHRI ANIKESH BANERJEE , JUDICIAL MEMBER Assessee by : None Revenue by : Shri Airiju Jaikaran ORDER PER ANIKESH BANERJEE (J.M): The instant appeal was filed against order of the ld. Commissioner of Income Tax (Appeals)-21, Mumbai [in brevity the CIT(A)] bearing appeal No. CIT( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o evade prying eyes of tax authorities. The Identity and genuineness of transaction pertaining to Sundry Creditors is not proved as mentioned above paras. Hence, it is clear that an arrangement has been adopted by the assessee company to by-pass the benefit of purchase by adopting colourable device. The purchaser party i.e. the assessee company has changed its majority shareholder at par to someone who is Managing Director of the company who is purchaser of the assessee company. This clearly indicates assessee's company intention to give a different colour to the transactions they carry out with an intention to evade the taxes. Reliance is placed on the decision of the Hon'ble Supreme Court in the case of McDowell Co Ltd Vs Commer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hich is extracted as follows: - 6. Decision: I have considered the facts of the case and submissions made by the appellant. The only ground of appeal raised in this appeal relates to addition of Rs.7,52,48,874/- in respect of sundry creditors u/s.68 of the IT. Act, 1961 made by the AO. It appears from the records, that the AO noticed that assessee had shown immovable property as an asset in the balance sheet and called for the details and documents relating to the property, purchase and sale of goods and change in share holding of the company during the year. On perusal of these details and documents, the AO noticed that there was a change in the share holding of the company during the year and assessee had indulged in circular tr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rcular trading from Compact Agencies to M/s. SSK Ispat and Power Ltd., to the assessee. In this transaction, the ld. AO was unable to verify by issuing notice u/s.133(6) to the party. So accordingly, the addition was made u/s.68. The ld. Appellate Authority during the appeal proceedings did not take proper consideration to verify this party in respect of this transaction. Lack of verification was adjudicated by the ld. CIT(A). Where the existence credentialism of the party in question the section 68 will start to play. In any case, un-verified sundry creditors cannot be allowed for deletion of Section 68. So, accordingly, the addition amount of Rs.7,52,48,754/- is setting aside to the ld. CIT(A) for further adjudication considering the ab ..... X X X X Extracts X X X X X X X X Extracts X X X X
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