TaxTMI 
TaxTMI 
2025 (2) TMI 44
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....ppeal, the assessee has raised the following grounds: - "The order of the PCIT-1 u/s. 263 of the Act is wrong as there wre regular business with M/s. AJS Impex Private Ltd. during the Assessment Year 2018-19 as under: Particulars Debit Rs. Credit Rs. Op. Balance 5,91,128 Purchases made in FY 2017-18 (AY 2018-19) 16,78,51416 Interest debited by party 10,38,251 Payments made F.Y. 2017-18 (A.Y. 2018- 19) 9,99,11,583 Balance 6,95,69,212 Total 16,94,80,495 16,94,80,495 Hence the AO correctly allowed the transaction as per supra, though he has highlighted on Page 11-12 of the order as under: Sr. No. Name Op. Balance Clos....
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.... raised by the assessee is against the initiation of revisionary proceedings under section 263 of the Act. 4. The brief facts of the case pertaining to this issue, as emanating from the record are: The assessee is engaged in the business of manufacturing of round/rectangular pipes from steel coils/sheets and is used for further manufacturing scaffolding and props. For the year under consideration, the assessee filed its return of income on 31.10.2018 declaring a loss of Rs. 7,36,71,524/-. On the basis of the information received from the Director General of GST Intelligence, the return filed by the assessee was selected for compulsory scrutiny and statutory notices under section 143(2) and 142(1) were issued and served on the assessee. D....
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....tion 143(3) r.w.s. 144B of the Act proceeded to make an addition, inter alia, of Rs. 1,94,84,413/- on account of credit balance appearing in respect of only two parties of sundry creditors, i.e Turakhia International Pvt Ltd. and Nyka Engineering Co. 6. Subsequently, the learned PCIT vide notice dated 01.03.2024 issued under section 263 of the Act alleged that the AO added the credit amounts of two parties after concluding that the assessee has failed to discharge its onus to explain the genuineness of credits appearing in its books of account with regard to respective parties, however, in case of one more creditor, viz., AJS Impex Pvt. Ltd., although the AO held that the liability was not genuine no disallowance was made by the AO in th....
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....ility in the case of AJX Impex Pvt Ltd is to be examined with reference to the NCLT's order No.CP(IB) No. 1009/MB-IV/2020 dated 03.02.2023. 3. The AO is directed to verify the assessee's submission that M/s.AJS Impex Pvt Ltd has filed a case u/s. 138 of the Negotiable Instruments Act for cheque bouncing, which is contended to have bounced due to operation remaining closed by bank as per DRT order. It is submitted by the assessee that the proceedings are pending before the 56th Metropolitan Magistrate, 56th Court and the next date of hearing is on 12/04/2024. 4. The AO is directed to verify the ledger of M/s.AJS Impex Pvt Ltd in the books of the assessee. 5. The AO is directed to examine the issue of cessat....
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....s no examination by the AO nor any addition was made. 9. During the hearing, the learned Authorized Representative furnished a copy of the ledger account of AJS Impex Pvt. Ltd. in the books of the assessee. From the perusal of the same, we find that there is a credit balance as against the debit balance noted on page 12 of the assessment order. Thus, it is ostensible that even despite coming to the conclusion that the genuineness of the transaction in respect of afore-noted 10 parties is not proved, the addition was only made in respect of two parties on the basis that liability has ceased to exist under section 41(1) without giving any reasoning as to why the same conclusion cannot be reached in respect of remaining 8 parties. Thus, we ....