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Income Tax Appellate Tribunal, DELHI BENCH ‘SMC-3’, NEW DELHI
Before: SHRI J. SUDHAKAR REDDY
Appellant by : Sh. Mohit, Adv. Respondent by : Sh. Amrit Lal, Sr.D.R. ORDER
This is an appeal filed by the assessee directed against the order of the Ld. Commissioner of Income Tax (Appeals)-18, New Delhi dt. 29.01.2016 pertaining to the assessment year (A.Y.) 2011-12 on the following effective ground. “2. That in facts and circumstance of the case Ld.CIT(A) erred in confirming addition in respect of M/s L-Comps & Impex (P) Ltd amounting to Rs.3,32,189/- without considering the confirmation, income tax return and copy of PAN filed during the appellate proceeding. He has erred in sustaining addition in respect of M/s L-Comps & Impex (P) Ltd. particularly when addition in respect of M/s Cosmos International on the same ground was deleted.”
The addition in question that is in dispute is an outstanding balance from M/s L-Comps & Impex (P) Ltd which is a sundry creditor. This credit arises on account of certain credit purchases made by the assessee. The assessee has furnished the confirmation from the party, its PAN ITA 1407/Del/2016 A.Y. 2011-12 Shri Yashpal Budhiraja, New Delhi number and copy of the income tax return of this party. The First Appellate Authority had on similar details filed in the case of M/s Cosmos International Limited, which is another sundry creditor, deleted the addition. Under such circumstances, the addition sustained in this case has to be necessarily deleted. This is a case of sundry creditor arising out of purchases. When the purchases are accepted and details have been filed as regards the identity of the party and genuineness of the transaction, and when bills and vouchers evidencing the purchases have been furnished, the addition cannot be made under section 68 of the Act. Thus this edition is hereby deleted.
In the result the appeal of the assessee is allowed for statistical purposes.
Order pronounced in the Open Court on 05th January, 2017.
Sd/- (J.SUDHAKAR REDDY) ACCOUNTANT MEMBER Dated: the 05th January, 2017. *manga
ITA 1407/Del/2016 A.Y. 2011-12 Shri Yashpal Budhiraja, New Delhi