TaxTMI 
TaxTMI 
2021 (12) TMI 759
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....s:- "2. Whether in the facts and circumstances of the case, the CIT(A) was justified in allowing the creditors to the extent of Rs,3,60,62,266/-outstanding in different names by accepting the confirmations submitted by the assessee during the course of appellate proceedings which were not submitted during the course of assessment proceedings even after providing sufficient opportunities. 3. Whether in the facts and circumstances of the case, the CIT(A) was justified in accepting the confirmation submitted by the assessee in respect of M/s. Brakes India Ltd., for Rs. 95,15,077/- as against the total outstanding claimed by the assessee in their financial statements of Rs. 1,11,57,112/- and ignoring the findings of the AO tha....
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....77,460 /- being income from business and other sources. The assessee is carrying on the business of manufacturing of auto parts/components specifically to supply to M/s Bosch Ltd, as per their design and drawing. The AO completed assessment u/s. 143(3) of the Income-tax Act, 1961, determining the total income at Rs. 4,62,06,750. 5. One common issue raised by the assessee is that the AO is not right in treating some of the creditors as bogus and bringing it to tax u/s. 68 of the Act. During the course of assessment proceedings, the AO on verification of the details filed by the assessee observed that the assessee was having sundry creditors totaling to Rs. 18,59,68,651. The assessee was asked to produce the confirmations for these credito....
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....eport dated 08-02-2019 that confirmations for these three creditors have been received during assessment proceedings. Therefore, there was no basis to treat these creditors as non-genuine in the light of the confirmations furnished before the AO and the AO has not brought any other reason on record for these additions. 8. We have heard both the parties and perused the material on this issue. With regard to the addition made by the AO with regard to Abhishek Alloys P. Ltd. of Rs. 23,49,927, Accurate Gauging & Instruments of Rs. 10,84,110 and Shakti Enterprises of Rs. 6,37,239, we are of the opinion that there are valid confirmation letters filed by the assessee before the AO and the AO without making any enquiry made addition which is rig....
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....s and perused the record. The assessee had filed confirmation letters in respect of these credits and the CIT(Appeals) after calling for a remand report and after going through the income tax returns of these parties for the AYs 2012-13 to 2014-15 came to the conclusion that they have the capacity to lend money to the assessee. He thus deleted the addition in the case of Mrs. Vilva Lakshmi of Rs. 8,23,582 and sustained the addition of Rs. 5,09,103 on account of excess liability towards Mrs. Nirmala. We are of the opinion that the CIT(Appeals) was justified in his order and uphold the same. Accordingly, we dismiss the grounds of the revenue in this regard. 12. In respect of Brakes India Ltd., the addition was made by the AO at Rs. 1,11,57....