TaxTMI 
TaxTMI 
2019 (10) TMI 1174
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....-12. The assessee has raised the following grounds of appeal:- 1. The CIT-A failed to direct the assessing officer to exercise the option u/s 131 of the I.T. Act in respect of sundry creditors to whom the notice issued u/s 133(6) was not served ever after the appellant had produced the payment of balance outstanding as on 31.03.2011 through banking channel. 2. The CIT(A) erred in confirming the balance outstanding in the sundry creditors account even though the appellant had deducted TDS in respect of all payments to the creditors including the balance outstanding as on 31.03.2011, which proves the identity of the creditors, which the CIT(A) held as not proved the identity of creditors for confirming the addition made by t....
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....hem. In respect of M/s. Air State Logistics & Couriers Pvt. Ltd., the creditors' responded to the notice and forwarded copy of the ledger account, as per which the balance as on 31.03.2011 was Nil. Therefore, he opined that creditors shown in books of account in respect of 10 parties as listed in para 3.1 of assessment order are not genuine and accordingly made additions of Rs. 50,87,609/- to the total income of the assessee. 3. Aggrieved by the order of the AO, the assessee preferred an appeal before the CIT(A). Before the CIT(A), the assessee submitted that it has furnished necessary evidences including identity of creditors before the AO and also filed various details to prove that purchases are in fact genuine which have arised out o....
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.... proof against creditors in subsequent financial yeas through proper banking channel. In spite of producing necessary evidences, the learned CIT(A) confirmed additions made by the AO only for the reason that no confirmation letters could be obtained from the creditors. The learned AR for the assessee, referring to paper book filed which contains evidences filed before lower authorities, submitted that it has filed complete details including bills issued by the creditors and also TDS return filed by the assessee evidencing TDS deducted on payment made to those parties. The assessee further submitted that in respect of M/s. Air State Logistics & Couriers Pvt. Ltd., although the party has responded to notice issued by AO and filed ledger accou....
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....itors with necessary evidence to the satisfaction of the AO nor prove genuineness of transactions. According to the AO, notices issued to few parties were returned unserved. Further, in respect of certain parties, even though notices were served, there was no response from those parties. The AO further observed that in respect of M/s. Air State Logistics & Couriers Pvt. Ltd., the party has confirmed that no amount was receivable as per the ledger accounts of the assessee as on 31.03.2011. Accordingly, he opined that creditors shown in books of accounts in respect of certain parties were not genuine and accordingly made additions under section 68 of the Income Tax Act, 1961. It is the contention of the assessee before the lower authorities t....
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....arties. The learned CIT(A) has also recorded categorical finding that the assessee has filed proof of payment by cheque against creditors in subsequent financial years. Therefore, we are of the considered view that it is incorrect on the part of the learned AO as well as learned CIT(A) to come to the conclusion that the assessee has failed to prove identity of the creditors. 8. Coming back to genuineness of transactions. The assessee claims that before lower authorities, it has filed various evidences including bills issued by the parties which contain PAN and TIN numbers of the suppliers. The assessee further claims that it has deducted TDS on payments made to those parties and filed necessary TDS certificates before the AO as well as t....
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....mount outstanding as on 31.03.2011 is Rs. 42,99,294/-. We further noted that as per assessee's books of accounts, balance outstanding as on 31.03.2011 is at Rs. 8,56,641/-. Even going by the details filed by the assessee, there is huge difference in balance as per books of accounts of the assessee and balance confirmed by the party. The assessee claims that there are some reconciliation issues between balance shown in books of accounts of the assessee and balance confirmed by the party for which necessary reconciliation can be filed to explain difference. Therefore, the learned AR for the assessee requested to set aside the issue to the file of the AO for further verification in light of reconciliation filed by the assessee to explain diffe....