2015 (11) TMI 1362

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....venue has filed this appeal challenging the order dated 21.04.2013 passed by Ld CIT(A)-19, Mumbai and it relates to the assessment year 2006-07. 2. The revenue is aggrieved by the decision of Ld CIT(A) in deleting the following additions made by the AO. (a) Disallowance of 10% of purchases (b) Disallowance of 10% of labour charges (c) Addition of Sundry creditors bala....

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....of the assessment proceedings and hence he disallowed 10% of the labour charges also. The AO further asked the assessee to get confirmation letters from three of its creditors. Since the assessee did not furnish the details, the AO added the outstanding balances pertaining to the three creditors aggregating to Rs. 6,64,235/- to the total income of the assessee. 4. In the appellate proceedings, ....

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...., the AO has made the impugned addition only for the reason that the suppliers did not respond to the notices issued by him. No other material was brought on record by him. Hence, the reasoning given by the AO does not justify the addition made by him. Accordingly, we are of the view that the Ld CIT(A) was justified in deleting this addition. 6. The next issue relates to the disallowance made o....

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....er has made the impugned additions only for the reasoning that the assessee did not furnish confirmation letters obtained from them. The assessee submitted before the Ld CIT(A) that the assessing officer has called for the details on 12.12.2008 and completed the assessment on 26.12.2008, i.e., without providing adequate time to the assessee. It was further submitted that two of the three creditors....