TaxTMI 
TaxTMI 
2018 (11) TMI 1059
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....come Tax Appellate Tribunal (Tribunal for short) dated 25th January, 2018. The appeal relates to the Assessment Year 2010-11. 2. The impugned order, while disposing of the appeal preferred by the Revenue, affirms the order dated 5th June, 2016 of the Commissioner of Income Tax (Appeals) whereby addition of Rs. 3,17,12,394/- made by the Assessing Officer, on account of unconfirmed trade creditors and expenses, was reduced to Rs. 28,65,804/-. In other words, addition of Rs. 2,88,46,590/- was deleted. 3. Learned counsel for the Revenue submits that the aforesaid addition was justified and rightly made by the Assessing Officer invoking Section 68 of the Act as the respondent-assessee had failed to file confirmations from trade creditors e....
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....d aspect and the findings recorded are as under:- "8. ............. Ground no. 5 which relates to the addition of Rs. 3,17,12,394 arose from the fact that in its books of accounts the appellant had shown the trade creditors and expenses payable to the tune of Rs. 3,17,12,394. During the course of assessment proceedings the AO asked the appellant to file the confirmation of trade creditors, since no confirmation were filed accordingly he added a sum of Rs. 3,17,12,394 to the appellant's income. Aggrieved by the above action of the AO, the appellant made a detailed submission the gist of which is as under: "..........With regard to the addition of Rs. 3,07,43,243 your goodself has directed the assessee to file copy of quest....
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....of appellate proceedings, it is seen that out of total creditors of Rs. 3,17,12,394 the appellant owes a sum of Rs. 3,10,74,661 towards the following entities: S.No Particulars Amount (In Rs.) 1 Sagir Dairy 78,23,855 2 Ram Pal Dairy 78,05,672 3 Abloo Dairy 79,79,590 4 Bahadur Dairy 50,10,200 5 Matadin Plastic 1,02,149 6 Shubi International 1,25,124 7 Jyoti Metal (India) 9,29,760 8 Steam Radiators Corp. 3,29,160 9 Committted Cargo Care P. Ltd 35,573 10 Nova Home Appliances P. Ltd 3,04,179 11 Chetra Trading LLC 6,29,399 Total 3,10, 74,661 It is seen that the parties at S.No. 1 to 6 were those parties with whom the app....
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.... noticed above had challenged deletion of addition of Rs. 2,88,46,590/- on account of unexplained trade creditors and expenses. 8. The findings of the Commissioner of Income Tax (Appeals) have been affirmed by the Tribunal inter alia recording that M/s Sagir Dairy, M/s Ram Pal Dairy, M/s Abloo Dairy, M/s Bahadur Dairy, M/s Matadin Plastic and M/s Shubi International, had continuous and regular dealings and transactions with the respondent-assessee. Business transactions had continued in the next Assessment Year 2011-12, when balance outstanding payments were made. The Commissioner of Income Tax (Appeals) had examined the evidence and material produced to establish and show identity, nature and genuineness of the expenditure. However, in ....