SACHIN BANSAL,LUDHIANA V. INCOME TAX OFFICER, WARD-7, LUDHIANA

ITA 569/CHANDI/2024

AI Insights

This case involves an appeal by Mr. Sachin Bansal, the proprietor of M/s Sachin Traders, against the order of the CIT(A)/NFAC, Delhi, which sustained the addition of Rs. 8,95,884 concerning sundry creditors for the Assessment Year 2018-19. The AO had initially added this amount to the assessee's income, noting that the sale bills provided did not pertain to the financial year 2017-18 as claimed by the assessee. The Tribunal, after considering the absence of the assessee and the lack of any adjournment application, decided to proceed with the available records and set aside the matter to the AO for further verification of the transactions.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 107804 (ITAT-CHANDIGARH)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-01-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: Not Allotted
• Assessment Year: 2018-2019
• Laws Referred To: Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RANJEET KAUR
• Keywords: Set aside; Competent authority
• Section: 143(3)

Judgement Text

"आयकर अपीलीय अिधकरण,च᭛डीगढ़ ᭠यायपीठ “एस.एम.सी” , च᭛डीगढ़ IN THE INCOME TAX APPELLATE TRIBUNAL, CHANDIGARH BENCHES, “SMC” CHANDIGARH HEARING THROUGH:VIRTUAL MODE ᮰ी िवᮓम ᳲसह यादव, लेखा सद᭭य BEFORE: SHRI. VIKRAM SINGH YADAV, AM आयकर अपील सं./ ITA No. 569/CHD/2024 िनधाᭅरण वषᭅ / Assessment Year : 2018-19 Mr. Sachin Bansal, Prop. M/s Sachin Traders B-I- 993, ST. No. 2 Deep Nagar Ludhiana-141001 बनाम The ITO Ward-7(1), Ludhiana ᭭थायी लेखा सं./PAN NO:AEPPB0574H अपीलाथᱮ/Appellant ᮧ᭜यथᱮ/Respondent िनधाᭅᳯरती कᳱ ओर से/Assessee by : None राज᭭व कᳱ ओर से/ Revenue by : Dr. Ranjeet Kaur, Sr. DR सुनवाई कᳱ तारीख/Date of Hearing : 30/12/2024 उदघोषणा कᳱ तारीख/Date of Pronouncement : 20/01/2025 आदेश/Order PER VIKRAM SINGH YADAV, AM This is an appeal filed by the assessee against the order of the Ld. CIT(A)/NFAC, Delhi dt. 29/01/2024 pertaining to Assessment Year 2018-19, wherein the assessee has challenged the sustenance of addition of Rs. 8,95,884/- in respect of sundry creditors. 2. At the outset, it is noted that there is a delay in filing the present appeal. After considering the material available on the record, the delay is hereby condoned and the appeal of the assessee is admitted for adjudication. 3. Briefly the facts of the case are that the assessment in this case was completed under section 143(3) r.w.s 143(3A) & 143(3B) of the Act vide order dt. 2 03/02/2021 wherein the AO brought to tax an amount of Rs. 8,95,884/- being the amount of sundry creditors. It was observed by the AO that there are three sundry creditors namely Darshan Lal, Sneh Lata and Vijay Pan Store totaling to Rs. 8,95,884/- in respect of which the assessee has furnished sale bills, however, the same doesn’t pertains to F.Y. 2017-18 and the submissions of the assessee that advance was taken during the F.Y. 2017-18 and sale was made in the next F.Y does not get substantiated basis documents placed on record, accordingly the addition of Rs. 8,95,884/- was made which, on appeal, has been sustained by the Ld. CIT(A). 4. During the course of hearing, none appeared on behalf of the assessee nor any adjournment application was filed. In the past, adjournment has been sought from time to time stating that the assessee is contemplating moving for tax settlement VSV scheme, however, there is no material available on record in terms of assessee having filed any such application and any approval so granted by the competent authority. Considering the facts and circumstances of the present case, it was decided that no useful purpose would be served in adjourning the matter any further, and to decide the matter basis material available on the record. 5. After hearing the Ld. DR and perusing the material available on the record, I find that sale bills are not available on record and it is difficult to decide whether the sale was actually undertaken and accounted for in the next financial year against the amount standing to the credit of the three sundry creditors. The matter therefore deserve to be set aside to the file of the AO to verify whether the assessee has undertaken the sale in the next financial year and where the same is found to be in order, the AO is directed to allow the necessary relief to the assessee. Accordingly the matter is set aside to the file of the AO to decide the same in light of the aforesaid direction after providing reasonable opportunity to the assessee. 3 6. In the result, appeal of the Assessee is allowed for statistical purposes. (Order pronounced in the open Court on 20/01/2025 ) Sd/- िवᮓम ᳲसह यादव (VIKRAM SINGH YADAV) लेखा सद᭭य / ACCOUNTANT MEMBER AG Date: 20/01/2025 आदेश कᳱ ᮧितिलिप अᮕेिषत/ Copy of the order forwarded to : 1. अपीलाथᱮ/ The Appellant 2. ᮧ᭜यथᱮ/ The Respondent 3. आयकर आयुᲦ/ CIT 4. आयकर आयुᲦ (अपील)/ The CIT(A) 5. िवभागीय ᮧितिनिध, आयकर अपीलीय आिधकरण, च᭛डीगढ़/ DR, ITAT, CHANDIGARH 6. गाडᭅ फाईल/ Guard File आदेशानुसार/ By order, सहायक पंजीकार/ Assistant Registrar "