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2018 (2) TMI 1710
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....econd is against restricting the disallowances of expenses claimed by the assessee under various heads. 3. The facts in this case are that for assessment year 2013-14, assessee filed its return of income showing total income of Rs. 16,46,970/-. The assessment was completed by the Assessing Officer at an income of Rs. 1,56,96,880/- vide order passed under section 143(3) of the Act. The Assessing Officer has made various additions and disallowances as per reasons given in the assessment order. Against the additions/disallowances made by the Assessing Officer, assessee preferred appeal before the ld. CIT(A). 4. With regard to addition of Rs. 1,39,84,675/-, the facts were analysed by the ld. CIT(A) and it was found that the Assessing Offi....
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....er and account books and the addition is made simply for non-compliance of notice under section 133(6) by the sundry creditors and the assessee placed reliance on the decision of Hon'ble jurisdictional High Court in the case of Commissioner of Income Tax, Central Kanpur vs. Anurag Agarwal reported in 229 Taxman 532. The assessee also placed reliance upon the decision in the case of Commissioner of Income tax vs. Shiv Dhooti Pearls & Investment Ltd. 237 Taxman 104 and contended that as per Section 106 of the Evidence Act, assessee has to prove the source of income and has no burden to prove the source over the source. This was ruled by the Hon'ble Bombay High Court in the case of Deloitte Consulting India Pvt. Ltd. vs. ACIT and Other....
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....tely preceding financial year, purchases made from the trade creditors and payments made to them. Since the issue in question is that of a sundry creditor, the appellant has discharged his onus sufficiently by submitting name and addresses and copies of accounts of the sundry creditors. Now, the sundry creditors being suppliers of the appellant, their supplies are included as purchases in the books of accounts of the appellant. I find that while adding the amount of sundry creditors to the income of the appellant, the AO has nowhere given any finding on the purchases reflected in the books of accounts of the appellant. The sales corresponding to the purchases made from the sundry creditors has also not been doubted. In fact at paragraph 2 o....
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....eted in the 1st Appeal and when the revenue went up to Tribunal against the order of CIT, The Hon'ble Bench of ITAT at Allahabad has upheld the order of CIT by holding that "AO has treated the liability to be of 'cash credit' in nature and that is why he felt anxious to have the identities of the creditors established. In this respect, first of all, we hold that credits 'in the Sundry Creditors (Udhar Khareed Khata)' are referable to the purchases of sarees on cash basis. As the purchases have been held to be genuine and accepted as such, the credits that remained outstanding in such account cannot be treated to have remained unexplained. The balance appearing in this account, which included the disputed additio....
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.... assessment no such confirmation was available and in the absence of response to notices under section 133(6), the ld. CIT(A) could not have accepted the genuineness of the transaction. 8. The ld. A.R. of the assessee relied upon the order of the ld. CIT(A) and reiterated the submissions placed before the subordinate authorities. 9. We have perused the case records, analysed the facts and circumstances of the case and we find that there are certain factors which needs to be considered from the order of the ld. CIT(A). Firstly that the Assessing Officer has not given any finding on the purchases reflected in the books of account of the assessee and corresponding sales to the purchases made from the sundry creditors has also not been do....
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.... We find that from the entire findings of the Assessing Officer, no exercise has been done so as to virtually see what is the outcome of notice issued under section 133(6) nor any enquiry or possible efforts were made by the Assessing Officer regarding the same. The disallowance was made only for the reason that there was no compliance of the said notice under section 133(6) of the Act by M/s Larsen & Toubro Limited. We have also to understand the practical position of the fact that M/s Larsen & Toubro Limited doing huge business in India will always as expected to keep their books of account proper and transactions perfect. It is seen that all the transactions are made through banking channel. The Department has not doubted the genuinity o....