ACIT Circle-I, Faridabad, Faridabad V. Kali Charan Sharma, New Delhi

ITA 2089/DEL/2019

AI Insights

The case involves an appeal by the Revenue against the order of the CIT(A) which pertained to the Assessment Year 2014-15. The primary issue was the deletion of an addition of Rs. 3,17,20,368 by the CIT(A), which the Assessing Officer had initially added, suspecting the creditors to be non-genuine. The assessee provided evidence that some entries were duplicate and that many creditors had opening balances which should not be considered income for the year in question. The CIT(A) accepted the assessee's explanations and evidence, leading to the deletion of the addition. The Tribunal, after reviewing the remand report from the Assessing Officer which confirmed the genuineness of the creditors, dismissed the Revenue's appeal.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 300895 (ITAT-DELHI)
• Duration Of Justice: 4 year(s) 5 month(s) 16 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-08-2023
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Next Hearing Date: 22-08-2023
• Assessment Year: 2014-2015
• Appeal Filed On: 07-03-2019
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: LOKESH GUPTA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, DELHI ‘C’ BENCH, NEW DELHI BEFORE SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER, AND SHRI KUL BHARAT, JUDICIAL MEMBER ITA No. 2089/DEL/2019 [A.Y 2014-15] The A.C.I.T Vs. Shri Kali Charan Sharma Circle -1 F – 193, Hari Nagar Extn. Faridabad Badarpur, New Delhi PAN : APGPS 7066 F (Applicant) (Respondent) Appellant by : Shri Lokesh Gupta, CA Department By : Shri R.K. Jain, Sr. DR Date of Hearing : 23.08.2023 Date of Pronouncement : 23.08.2023 ORDER PER N.K. BILLAIYA, ACCOUNTANT MEMBER:- This appeal by the Revenue is preferred against the order of the ld. CIT(A) -10 New Delhi dated 10.12.2018 pertaining to Assessment Year 2014-15. 2 2. The sum and substance of the grievance of the Revenue is that the ld. CIT(A) erred in deleting the addition of Rs. 3,17,20,368/- being non- genuine sundry creditors. 3. Briefly stated, the facts of the case are that during the course of scrutiny assessment proceedings, the assessee was asked to furnish evidences in respect of 11 creditors, who, in the opinion of the Assessing Officer, appeared to be non-genuine. 4. On receiving no plausible reply alongwith any documentary evidences, the Assessing Officer made addition of Rs. 3,17,20,368/-. 5. When the matter was agitated before the ld. CIT(A), it was explained that there were duplicate entries, which resulted into double addition. It was further explained that in most of the creditors, there were opening balances and opening balances cannot become income of the assessee for the year under consideration. 3 6. In so far as the evidences are concerned, the assessee filed documentary evidences to prove to prove the genuineness of the creditors. On perusal of the documentary evidences, the ld. CIT(A) was of the opinion that since the corresponding sales have been accepted, genuineness of the creditors cannot be doubted with and deleted the addition. 7. When the appeal came up for hearing before this Bench on 04.08.2022, this Bench asked the ld. DR to call for remand report from the Assessing Officer. Today, the ld. DR submitted the report of the Assessing Officer dated 09.09.2022. A perusal of the same shows that the Assessing Officer concluded as under: “It is observed that the transactions are proved to be genuine and the assessee has already cleared the payment of creditors in the subsequent year F.Y. 2016- 17. Therefore, the credit worthiness of the sundry creditors is proved to be genuine.” 4 8. Since in the remand report the Assessing Officer has accepted the genuineness of the creditors, we do not find any reason to interfere with the findings of the ld. CIT(A). 9. In the result, the appeal of the Revenue in ITA No. 2089/DEL/2019 is dismissed. The order is pronounced in the open court on 23.08.2023. Sd/- Sd/- [KUL BHARAT] [N.K. BILLAIYA] JUDICIAL MEMBER ACCOUNTANT MEMBER Dated: 23 rd August, 2023. VL/ 1. Appellant 2. Respondent 3. CIT 4. CIT(A) 5. DR Asst. Registrar, ITAT, New Delhi 5 Date of dictation Date on which the typed draft is placed before the dictating Member Date on which the typed draft is placed before the Other Member Date on which the approved draft comes to the Sr.PS/PS Date on which the fair order is placed before the Dictating Member for pronouncement Date on which the fair order comes back to the Sr.PS/PS Date on which the final order is uploaded on the website of ITAT Date on which the file goes to the Bench Clerk Date on which the file goes to the Head Clerk The date on which the file goes to the Assistant Registrar for signature on the order Date of dispatch of the Order