2023 (6) TMI 1018

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....id appeal has been filed by the Revenue against order dated 02.12.2022, passed by NFAC Delhi, for the quantum of assessment passed u/s 143(3), for the AY 2016-17. 2. In the grounds of appeal Revenue has raised the following grounds: 1. "Whether on the facts and circumstances of the case and in law, the Ld.CIT(A) was correct in deleting the addition made of Rs. 3,16,75,740/- without app....

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....the assessee was evasive." 3. The facts in briefs are that the assessee has filed his return of income on 15.10.2016 declaring total income of Rs.24,43,780/-. The Ld. AO on the perusal of the records on that "Sundry Creditors" of sums aggregating to Rs. 31,67,57,386/- are appearing in the balance sheet. Accordingly, he issued show cause notice to the assessee to file details and confirmation of....

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....tors have not been proved. He observed that such kind of estimated adhoc addition of 10% of the amounts shown under the head, Sundry Creditors cannot be confirmed, because there is no such provision under the Act to make adhoc addition u/s. 41(1), in respect of unconfirmed trade creditors balance at the year-end without bringing on record necessary evidence and invoking the correct provision of la....