ITO, PATIALA vs. SH. BALWINDER SINGH, PATIALA

ITA 224/CHANDI/2015Status: DisposedITAT Chandigarh04 September 2025AY 2009-10Bench: SHRI LALIET KUMAR (Judicial Member), SHRI MANOJ KUMAR AGGARWAL (Accountant Member)1 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal held that the addition on account of sundry creditors was not sustainable as the provisions of Section 68 are applicable only to unexplained cash credits, and these creditors represented trade payables that were settled. The disallowance under Section 40A(3) and 40A(3A) was also deleted as the AO could not establish that any single cash payment exceeded the threshold limit, and the payments were made in the routine course of business. The disallowance under Section 40(a)(ia) for freight payments was deleted as each GR represented a separate contract, and the assessee had no overall contract with the transporters.

What were the facts?

The revenue appealed against the deletion of additions made by the AO for sundry creditors under Section 68, disallowance for cash payments under Section 40A(3) and 40A(3A), and disallowance for freight payments under Section 40(a)(ia). The assessee had also filed cross-objections challenging the AO's jurisdiction and the confirmation of some additions by the CIT(A).

What were the issues?

Whether the addition for sundry creditors under Section 68 is valid when they represent trade payables. Whether disallowances for cash payments under Section 40A(3)/40A(3A) and freight payments under Section 40(a)(ia) are justified.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 133A,Section 143(2),Section 120,Section 68,Section 40A(3),Section 40A(3A),Section 194C,Section 40(a)(ia)

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Heard together (4 matters)

ITA No.224/CHANDI/2015
CO. No.13/Chandi/2015
ITA No.225/CHANDI/2015
ITA No.185/CHANDI/2015

Read from the judgment's own cause title. This page is filed under one of them.

1

IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH, CHANDIGARH HYBRID HEARING BEFORE HON’BLE SHRI LALIET KUMAR, JM AND HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM 1. आयकरअपीलसं./ ITA No.224/CHANDI/2015 (िनधा"रणवष" / Assessment Year: 2009-10) ACIT-Circle Patiala Shri Balwinder Singh Patiala. Prop. M/s M.P. Traders बनाम/ Vs. (Represented by L/R Shri Simranpal Singh) # 986/3 Dhobi Ghat, Patiala. "थायीलेखासं./जीआइआरसं./PAN/GIR No. ACRPS-5840-M (अपीलाथ"/Appellant) : (""थ" / Respondent) &

2.

CO. No.13/Chandi/2015 [In ITA No.224/CHANDI/2015] (िनधा"रणवष" / Assessment Year: 2009-10) Shri Balwinder Singh ACIT-Ward-1 बनाम/ Prop. M/s M.P. Traders Patiala. (Represented by L/R Shri Simranpal Singh) Vs. # 986/3 Dhobi Ghat, Patiala. "थायीलेखासं./जीआइआरसं./PAN/GIR No. ACRPS-5840-M (अपीलाथ"/Appellant) : (""थ" / Respondent) & 3. आयकरअपीलसं./ ITA No.225/CHANDI/2015 (िनधा"रणवष" / Assessment Year: 2009-10) ACIT-Circle Patiala Shri Kamalpreet Singh बनाम/ Vs. Patiala. Prop. M/s Saran Enterprises 4, DLF Shopping Complex, Patiala. "थायीलेखासं./जीआइआरसं./PAN/GIR No. ACBPS-1831-N (अपीलाथ"/Appellant) : (""थ" / Respondent)

& 4. आयकरअपीलसं./ ITA No.185/CHANDI/2015 (िनधा"रणवष" / Assessment Year: 2009-10) Shri Kamalpre

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