TaxTMI 
TaxTMI 
2016 (9) TMI 1318
X X X X Extracts X X X X
X X X X Extracts X X X X
....e, therefore, dismissed as not pressed. 5. On ground Nos. 3 to 6, assessee challenged the addition of Rs. 5,92,647/- in respect of sundry creditors/trade creditors. In this case search & seizure operation was carried out and assessment under section 153A/143(3) of the Act was framed. The Assessing Officer asked the assessee to file confirmations from the sundry creditors and to furnish confirmed ledger accounts. The Assessing Officer noted that assessee has introduced fresh creditors amounting to Rs. 5,92,647/- during the year. In the absence of confirmation and copy of the ledger account, addition was accordingly made. The ld. CIT(Appeals) decided several appeals of the assessee through common order and noted in the impugned order that this ground is covered in assessment year 2003-04. It is, therefore, necessary to take into consideration the findings of ld. CIT(Appeals) in assessment year 2003-04. The ld. CIT(Appeals) noted that addition on account of sundry creditors amounting to Rs. 55,05,290/- was made in assessment year 2003-04. The assessee did not file confirmations. It has been submitted by the assessee that sundry creditors as per balance sheet dated 31.03.2003 was to t....
X X X X Extracts X X X X
X X X X Extracts X X X X
....having running account from prior to 01.04.2002, therefore, ld. CIT(Appeals) was unable to confirm the addition for assessment year 2003-04 as by doing so, the entire trading results of the assessee would be abnormal. The appeal of the assessee for assessment year 2003-04 was accordingly allowed. 7(i) The ld. CIT(Appeals), as regards assessment year under appeal 2007-08 held that fresh credit additions are in order and accordingly, same was confirmed. 8. We have heard ld. Representatives of both the parties. The ld. counsel for the assessee reiterated the submissions made before authorities below. He has submitted that all are trade creditors as per regular books of account maintained by assessee and have been audited. No evidence of purchase or sales outside the books of account has been found. The purchases are duly recorded in the books of account which have been accepted by the department. Chart is filed in the Paper Book to show balances year after year due to the parties. No evidence was found during the course of search that such balances were not due or any purchases in respect of such parties were bogus. The books of account had been seized during the course of search an....
X X X X Extracts X X X X
X X X X Extracts X X X X
....are identical as have been considered in assessment year 2003-04. The ld. CIT(Appeals) in assessment year 2003-04 deleted the entire addition because entire sundry creditors outstanding on end of the financial year cannot be addede. The ld. CIT(Appeals) noted that the trading results for assessment year 2003-04 have been accepted by the Assessing Officer therefore, there is no logic to make addition of the entire balance in this account. 9(i) The ld. CIT(Appeals) also noted that many of the parties are having running accounts from prior to 01.04.2002. The ld. CIT(Appeals) also held that if addition of this nature is confirmed, the trading results of the assessee would be abnormal. The ld. counsel for the assessee during the course of arguments submitted that the departmental appeal for assessment year 200304 had been dismissed by the Tribunal in group cases. When according to the ld. CIT(Appeals), the issue is covered by his order for assessment year 2003-04, there should not be any reason to confirm the addition against the assessee in assessment year under appeal, because the facts are identical. the assessee pleaded that purchases have been made from various parties and assesse....
X X X X Extracts X X X X
X X X X Extracts X X X X
....und Nos. 3 to 6 of the appeal of the assessee are allowed for statistical purposes. 11. On ground No. 7, assessee challenged the addition of Rs. 4,62,173/- on account of provisions of Section 40(a)(ia) of the Income Tax Act. The ld. CIT(Appeals) also noted that this issue is covered by his findings given for assessment year 2003-04. The Assessing Officer noted that Special Auditor has observed that assessee made some payments on account of brand charges on which assessee company was liable to deduct TDS as per provisions of Income Tax Act and since no TDS has been deducted, therefore, according to provisions of Section 40(a)(ia), addition was made. The ld. CIT(Appeals) confirmed the addition. 12. The ld. counsel for the assessee submitted that brand charges were paid to sister concern M/s Meera Moti Spices Pvt. Ltd. who have declared the amount in question in their return of income and paid the taxes. Therefore, when by filing Income Tax Returns and offering sum received for taxation, disallowance would not be justified and matter may be remanded to the Assessing Officer for re-examination in view of decision of Delhi High Court in the case of CIT Vs Ansal Land Mark Township P. L....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... (M/s Heera Moti Agro Products, Chandigarh A.Y. 2007-08) 16. This appeal by assessee has been directed against the order of ld. CIT(Appeals) Central, Gurgaon dated 18.03.2013 for assessment year 2007-08. The ld. counsel for the assessee did not press additional ground of appeal and ground Nos. 1, 2 and 3, the same are dismissed as not pressed. 17. On ground Nos. 4 to 7, assessee challenged the addition on account of sundry creditors in a sum of Rs. 91,549/-. This issue is same as have been considered in ITA 739/2013 in the case of M/s Heera Moti Agro Industries. Following the reasons for decision in this case, we set aside the orders of authorities below and restore the same to the file of Assessing Officer with direction to re-decide this issue as is directed in ITA 739/2013. These grounds are allowed for statistical purposes. 18. In the result, appeal of the assessee is allowed partly for statistical purposes. ITA 568/2013 : (M/s Heera Moti Spices Pvt. Ltd., Chandigarh A.Y. 2007-08) 19. This appeal by assessee has been directed against the order of ld. CIT(Appeals) Central, Gurgaon dated 15.03.2013 for assessment year 2007-08. 20. The ld. counsel for the assessee did not pr....