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TMI Blog2024 (9) TMI 724X X X X Extracts X X X X X X X X Extracts X X X X ..... address of creditors were available with the CIT(A), therefore he could have verified from the books of account of the creditors by taking appropriate steps. The statute has provided ample powers to the authorities but both the authorities did not do so. As interesting to note that the for the AY 2014-15 for the following AY the order was passed by the AO W-1 on 26.02.2016 after the passing of the order the impugned AY and there is no any whisper or remarks on the opening balance of the creditors. Therefore, we delete the addition. Decided in favour of assessee. - Smt. Beena Pillai, Judicial Member And Shri Laxmi Prasad Sahu, Accountant Member For the Appellant : Shri Sudheendra B.R., Advocate For the Respondent : Shri Sreenivasa Karthik ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2. Briefly stated the facts of the case are that the assessee filed return of income on 27.9.2012 declaring total income of Rs. 3,24,040. The case was selected for scrutiny and statutory notices issued to the assessee. During the course of assessment proceedings, the AO on verification of sundry creditors called the assessee to furnish the names and address of sundry creditors and confirmation account. The assessee submitted the name and address of the parties with confirmation letters. The AO sent notices to 28 creditors as listed in the assessment order directly and received reply from them. On verification of the reply he noted a difference of Rs. 60,529 from the closing balance as shown by assessee and asked assessee to furnish reconcil ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... remand report, the ld. FAA deleted the addition towards nonverification of debtors and confirmed the addition towards creditors. Aggrieved, the assessee is in appeal before the ITAT. 7. The ld. AR submitted that the difference of Rs. 60,529 towards closing balance in the books of assessee and closing balance of creditors. the reasons were explained during the course of assessment proceedings which is placed at pages 106 107 of PB as difference due to calculation, TDS, commission not accounted by the party, debit note, etc. In respect of addition of Rs. 90,79,528 as per para 4.1 of the AO s order in respect of non-compliance by the creditors and addition of Rs. 29,60,099 where notices were unserved, the ld. AR submitted that the books of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 267 (Delhi) 4 Rameshwar Shaw v ITO (2024) TaxCorp (A.T.) 110274 (ITAT-KOLKATA) 5 ACIT v Uppal Jitendra Shah (2022) TaxCorp (A.T.) 98093 (ITAT-PUNE) 6 ACIT v Samtex Fashions Ltd (2021) TaxCorp (A.T.) 89543 (ITAT-DELHI) Where trading results have been accepted, no addition w.r.t sundry creditors merely because 133(6) notices were not responded 7 ITO v Standard Leather P. Ltd [2016] 76 taxmann.com 109 (Kolkata Trib.) 8 ITO v Swati Housing Construction (P.) Ltd [2019] 112 taxmann.com 371 (Delhi - Trib.) Once trading results have been accepted, no addition w.r.t. sundry creditors 9 CIT v. Ritu Anurag Aggarwal [2010] 2 taxmann.com 134 (Delhi) 10 PCIT v. Attire Designers (P) Ltd. [2022] 145 taxmann.com 188 (Delhi) 11 IKEA Trading (India) (P.) Ltd. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on the assessee to prove the identify of these persons, genuineness of transactions. The assessee has miserably failed in discharging his onus. The ld. DR relied on the judgment of jurisdictional High Court. 9. Ground Nos. 2.1 to 2.3: 9.1 Considering the rival submissions, here the dispute is only regarding verification of creditors as per para 4 to 4.2 of the assessment order. The first issue is in regard to difference of Rs. 60,529 as per para No. 4 of the assessment order. In this regard, the assessee has submitted detailed reasons without any supporting evidence which is placed at page 106 of PB. The entries made in the books of accounts should be supported by evidences but here there are no such evidences in support of entries made at ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted: 02.02.2015, received by the Assessing Officer on 06.02,2015. However it is seen that the confirmations do not contain the PAN of the creditors. Therefore the genuineness of these creditors remains unverified. In view of this, I request the Commissioner of Income-tax (Appeals) to kindly uphold the additions made by the Assessing Officer. 9.4 From the above, we note that the confirmations were available with the AO. If he had any doubt regarding balances shown, he could have again verified with the creditors. He has not doubted the closing balances, he has merely observed that the confirmations do not contain PAN of the creditors and therefore genuineness of these creditors remains unverified. The names and address of creditors were avai ..... X X X X Extracts X X X X X X X X Extracts X X X X
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