AI Drafter 
TaxTMI 
TaxTMI 
2021 (8) TMI 172
X X X X Extracts X X X X
X X X X Extracts X X X X
.... facts and on law in confirming the addition of Rs.l,28,02,536/-as sundry creditors made by I.T.O. Ward 7 (4), New Delhi, with and considering the confirmatory letters which were filed during the remand proceeding before I.T.O. 2. That, a facts and in the circumstance of the case, Commissioner of Income tax (Appeal)-X, New Delhi erred both on facts and on law in confirming the addition of Rs. 24,13,787/- as advance from customers made by I.T.O. u/s 68 of I.T.Act with and considering the confirmation filed during the remand proceeding before I.T.O. 3. That, a facts and in the circumstance of the case, Commissioner of Income tax (Appeal)-X, New Delhi erred both on facts and on law in confirming the addition of Rs. 19,78,909/....
X X X X Extracts X X X X
X X X X Extracts X X X X
....G shows an amount of Rs. 1,77,92,311/- as sundry creditors. Details submitted by the company shows that Rs. 1,35,34,316/- pertain to last to last years and it is also evident from the details filed that there has been no transactions with the creditors of Rs. 1,28,02,536/- during the year under consideration. Therefore, the Assessing Officer disallowed Rs. 1,28,02,536 and added in the income of the company as bogus liability created by the assessee company. Further, the Assessing Officer observed that the assessee company also shows an amount of Rs. 24,13,787/- as advance received from customers. The Assessing Officer held that since the assessee failed to get the details of those parties who confirmed the said amounts, Rs. 24,13,787 is add....
X X X X Extracts X X X X
X X X X Extracts X X X X
....and the source of the fund received. As regards to Ground No. 3 relating to credit balance in current account of ICICI Bank to the extent of Rs. 19,78,909, the Ld. AR submitted that the Assessing Officer has confirmed in his remand report dated 18.07.2012 before the CIT(A) that a confirmation of the bank is in record to justify the point of the assessee. Hence, the assessee has established genuineness of all the transactions, identity of the creditors and the source of the fund received. The Ld. AR relied upon the following decisions: i) CIT vs. Orissa Corporation Pvt. Ltd. 159 ITR 78 (SC) ii) Daulat Ram Rawat Mull 87 ITR 349 (SC) iii) Sarogi Credit Corpn. 103 ITR 344 (Patna) iv) Tola Ram Daga 59 ITR 632 ....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... clarification. As regards to Ground No. 6 relating to expenses of Rs. 3,13,682, the Ld. AR submitted that the assessee company's director submitted satisfactory clarification and Ld. AR also placed before us the vouchers for the expenses for A.Y. 2007-08. The Ld. AR relied upon the decision of the Hon'ble Delhi High Court in case of CIT vs. Dalmia Cement Pvt. Ltd. 254 ITR 377. 6. The Ld. DR relied upon the assessment order and the order of the CIT(A). The Ld. DR submitted that as regards Ground No. 1, the Assessing Officer as well as the CIT(A) has taken cognizance of the evidences produced at the time of assessment proceedings and, thereof, correctly made the additions. As regards Ground No. 2, the Ld. DR relied upon the assessment ord....
X X X X Extracts X X X X
X X X X Extracts X X X X
....m the creditors and the advances obtain was a genuine loan from the customers. Hence, the assessee has establish genuineness of all the transactions, identity of creditors and source of the funds received. The Assessing Officer has totally ignored all these facts while filing the remand report on the contrary he has acknowledged that to establish genuineness, identity and creditworthiness. The assessee has filed the documents which are relevant to these three factors. Hence, the CIT(A) has ignored the evidences and simply confirm the additions. Thus, the record shows that the assessee has establish genuineness of all the transactions, identity of the customers from whom the addition has been taken and also the source of funds received for o....