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TMI Blog2025 (2) TMI 44X X X X Extracts X X X X X X X X Extracts X X X X ..... 10 parties, as noted in the foregoing paragraph, however, proceeded to make the addition u/s 41(1) in respect of only two sundry creditors. We find that as regards the remaining 8 parties shown as sundry creditors by the assessee, there is no examination by the AO nor any addition was made. During the hearing, AR furnished a copy of the ledger account of AJS Impex Pvt. Ltd. in the books of the assessee. From the perusal of the same, we find that there is a credit balance as against the debit balance noted of the assessment order. Thus, it is ostensible that even despite coming to the conclusion that the genuineness of the transaction in respect of afore-noted 10 parties is not proved, the addition was only made in respect of two parties ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... correctly allowed the transaction as per supra, though he has highlighted on Page 11-12 of the order as under: Sr. No. Name Op. Balance Closing Balance 1 Turakhia International Pvt. Ltd. 8,46,02,450 2,79,01,886 DR. 2. Turakhia International Pvt. Ltd. 23,16,581 1,34,393 cr. 3. Standard Retail Pvt. Ltd. 1,16,29,625 17,77,249 Dr. 4. Nyka Engineering co. Nil 1,93,50,020 cr 5. Vipul Lalit Seth Prop. M/s. Siddhi Enterprises 1,15,29,293 1,08,46,045 Dr. 6. AJS Impex Pvt. Ltd. (Pur) 5,91,129 6,95,69,212 Dr. The AO did not make any mistake based on copies of ledger accounts submitted by us during the course of assessment proceedings. (Coolly.) 2. The appellant had issued the cheques for due payment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der section 143(2) and 142(1) were issued and served on the assessee. During the assessment proceedings, the assessee filed the details in respect of sundry creditors. To examine the genuineness of the creditors, notices under section 133(6) of the Act were randomly issued to certain parties. Out of the few parties to whom the notice under section 133(6) of the Act was issued, replies from certain parties were not received. It was further observed from a few replies received in response to the notice issued under section 133(6) of the Act that the opening and closing balance does not match with the details provided by the assessee and parties. Further, the ledger account of the parties was not furnished. During the assessment proceedings, t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessment order. Accordingly, the learned PCIT alleged that the assessment order passed under section 143(3) r.w.s. 144B of the Act is erroneous insofar as it is prejudicial to the interest of the Revenue. In response, the assessee submitted that the AO did not make any addition in respect of AJS Impex Pvt. Ltd. 7. The learned PCIT, vide impugned order, disagreed with the submission of the assessee and held that the AO in the assessment order mentioned that the assessee has failed to discharge its primary onus to explain the credits appearing in its books of account, however, on the very same page only discuss the details of certain parties. The learned PCIT held that the AO has not given any reason for not making the addition in respect o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by bringing relevant documents on record as per the relevant provisions of the Act." 8. We have considered the submissions of both sides and perused the material available on record. In the present case, it is evident from the record that in order to examine the genuineness of the creditors as appearing in the books of the assessee. Notices under section 133(6) of the Act were issued. It is further evident from the record that during the assessment proceedings in respect of 10 creditors, as noted in the foregoing paragraph, due to no response from these parties to the notices issued under section 133(6) of the Act, the assessee was asked to provide the confirmation and bank statement along with their ITR. However, it is evident from the re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt order passed under section 143(3) r.w.s. 144B of the Act has been passed without making inquiries or verification which should have been made, and therefore, the present case clearly falls within the ambit of provisions of Explanation 2 to Section 263 of the Act. Accordingly, we find no infirmity in the findings of the learned PCIT vide impugned order that the assessment order is erroneous insofar as it is prejudicial to the interest of the Revenue. Accordingly, the order passed under section 263 and directions rendered therein to the AO to conduct de novo assessment are upheld. As a result, the grounds raised by the assessee are dismissed. 10. In the result, the appeal by the assessee is dismissed. Order pronounced in the open Court o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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