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Facts
The assessee filed an appeal against the order sustaining an addition of Rs. 8,95,884/- in respect of sundry creditors. The Assessing Officer observed that sale bills furnished by the assessee did not pertain to the relevant financial year, and the assessee's submissions were unsubstantiated.
Held
The Tribunal noted a delay in filing the appeal, which was condoned. It was observed that sale bills were not available, making it difficult to verify the transactions. The matter was set aside to the Assessing Officer for verification and to provide relief if the sales were found to be in order.
Key Issues
Whether the addition sustained by the CIT(A) for sundry creditors is valid when sale bills are not verifiable and the transactions could not be substantiated by the assessee.
Sections Cited
143(3), 143(3A), 143(3B)
AI-generated summary — verify with the full judgment below
िनधा"रती क" ओर से/Assessee by : None राज"व क" ओर से/ Revenue by : Dr. Ranjeet Kaur, Sr. DR सुनवाई क" तारीख/Date of Hearing : 30/12/2024 उदघोषणा क" 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.
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.
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).
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.
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.