ITO, NEW DELHI vs. M/S. UNITED INDIA CONSTRUCTION & COMMUNICATION PVT. LTD., DELHI

O R D E R PER PRASHANT MAHARISHI, A. M. 1. This is an appeal filed by the revenue against the order of the ld CIT(A)-22, New Delhi dated 21.08.2015 for the Assessment Year 2010-11 raising solitary ground of appeal as under:- “1. On the facts and in the circumstances of the case and in law the ld CIT(A) has erred in reducing the addition of Rs. 14190746/- to Rs. 9167043/- made by AO on account of S. Creditors.”

2. The brief facts of the case is that the assessee is a private limited company engaged in the business of civil contractor who filed its return of income on 15.10.2010 declaring income of Rs. 359318/-. The assessment u/s 144 of the Act was passed on 15.03.2013 determining total income of the assessee at Rs. 15052851/-. The main addition was made on account of sundry creditors of Rs. 14190746/-. On appeal before the ld CIT(A) the addition was restricted to Rs. 9167043/- and therefore, against the relief granted by the ld CIT(A) the revenue is in appeal.

3. The ld ld Departmental Representative submitted that assessee has not given any details before the ld Assessing Officer and therefore, at the end of the year creditors of the assessee were Rs. 19150158/- compared to Rs. 4959412/- in the beginning of the year and therefore, the addition of Rs. 14190746/- is added. It was further stated that despite repeated opportunities none appeared on behalf of the assessee to provide this information. The ld CIT(A) on the same set of facts has deleted the part of the addition. She referred to para No. 7 of the order of the ld CIT(A) and stating that addition cannot be deleted determining the profit of the assessee.