2017 (7) TMI 1483

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....he I.T. Act, 1961. 2. That the worthy CIT(A)-2, Ludhiana has not appreciated the facts that inspite of providing various opportunities, the assessee was not able to provide confirmation of creditors amounting to Rs. 2,04,38,739/- 3. Brief facts of the case are that the assessee had filed its return of income declaring income of Rs. 2,01,11,910/- on 03/09/2013. The assessee is engaged in trading of vehicles and spare part, running of vehicle workshop, insurance commission, DMA commission from banks and finance companies under proprietor concern M/s Dada Motors. 4. During the course of assessment proceedings, the AO observed that the assessee had shown Current Liabilities & Provisions under Schedule-10 at Rs. 67.90 Crores. Duri....

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....ned back in the subsequent years. However the assessee could not submitted the confirmation pertaining to 13644 creditors amounting to Rs. 20438739/-. The AO has brought this amount to tax under section 68 being the sundry creditor for which no confirmation have been filed with the assessee. 5. Before the Ld. CIT(A) the assessee has made following submissions: (4) That no addition has never been made u/s 68 of the income tax act on the issue of sundry creditors in any of the earlier and succeeding years except the year under appeal. (5) That the onus of proving identity of the creditors, genuiness of transactions and mentioning of PAN wherever required under law duly discharged by the appellant by providing postal addre....

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.... duly settled in the succeeding years. 6. Before us the Ld. DR contended that inspite of many opportunities the assessee has not filed confirmation letters thus failed to discharge the primary onus regarding genuineness of the sundry creditor and hence the addition was warranted. 7. We have gone through the documents filed before us and also submissions made before the lower authorities. The amount brought to tax under section 68 pertains to outstanding balance of 13644 parties and the amount ranging from Rs. 28. The assessee has also produced documents as to how the credit balance were adjusted / squared off in the subsequent years. It is also pertinent to note that the sundry creditor pertains to AY 2011-12 and 2012-13 too. 8. Th....