TaxTMI 
TaxTMI 
2022 (5) TMI 1330
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....e limited ground relates to deletion of addition of Rs. 1,91,98,342/- on account of large increase in Sundry Creditors with respect to turnover during the year. 2. During the course of hearing, the ld. D/R taken us through the finding of the Assessing officer and submitted that one of the reasons for selection of the case for limited scrutiny was large increase in Sundry Creditors with respect to turnover as compared to preceding year. It was submitted that as per the return of income, there were sundry creditors amounting to Rs. 3,70,38,791/- as against the amount of sundry creditors of Rs. 1,78,40,449/- in the immediately preceding assessment year and given the increase in sundry creditors by Rs. 1,91,88,342/-, a show cause notice was ....
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....o accounting of such transactions and related foreign exchange fluctuation which have not been properly appreciated by the ld. CIT (A). It was accordingly submitted that the order of the ld. CIT (A) may kindly be set aside and that of the AO be confirmed. 3. Per Contra, the ld. A/R submitted that it is an admitted fact that during the course of assessment proceedings the assessee could not substantiate the increase in the quantum of sundry creditors through documentary evidence. However, during the course of appellate proceedings, the additional evidences were furnished in the form of ledger account of purchasers and sundry creditors, copies of VAT returns and other documents in support of purchases and sundry creditors which were duly a....
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....balances that increased during the previous year related to the assessment year of the impugned order is a matter of record and not in dispute. That the appellant has filed confirmations with regards to the domestic Creditors is also a matter of records and not in dispute. The Ld. AO has in the remand proceedings not offered any adverse comment on the veracity of closing balances of the overseas Creditors. The Ld. AO has in fact confirmed through the bank that all the payments shown in the running accounts of the overseas Creditors have been done against invoices raised and bill of Entry as well as shown to the Customs/VAT departments. Thus that the Credit Accounts are running accounts relating to regular imports what have been paid by the ....
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....y the Ld. AO (though not explicitly quantified) is Rs. 39,437/- is a matter of record and not in dispute; that the there are similar losses with regards to exchange rate valuations which also have not been taken into account in few transaction has been examined from record. That the appellant is maintaining regular books of accounts and the books of accounts were dully audited is a matter of record and not in dispute. It is my considered view that the variation running into tens of thousands out of total imports of over Rs. 14.29 Crores, through irregular, are hardly material to warrant rejection of the entire books of accounts. That during the year the purchases of the appellant have increased from Rs. 2,80,55,799.65 in 2013-14 to Rs. 16,6....