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Income Tax Appellate Tribunal, DELHI BENCH ‘SMC-3’, NEW DELHI
Before: SHRI J. SUDHAKAR REDDY
This is an appeal filed by the Assessee directed against the order of the Ld. Commissioner of Income Tax (Appeals)-XXV, New Delhi pertaining to the A.Y. 2010-11 dated 3.6.2014.
The only issue for our consideration is the addition made under section 68 of the Income Tax Act, 1961 (the Act).
On a careful consideration of rival contentions I find that in the case of M/s Friends Alloys, M/s Dee Pearls P Ltd. and Vardhaman Industries, the credits are not pertaining to this year. These amounts are opening balances carried forward from the Previous Year . Hence no addition can be made during this year. Anyhow, keeping in view the submissions of the Ld. Sr.D.R. we set aside the issue to the file of the Assessing Officer for verification. In case these credits are closing balances of the earlier financial year, no addition can be made during the year. 1
As regards the credits in the name of M/s Seasons Furnishing, M/s Cosyco International, M/s Charnock Auto Product, the Ld. Counsel for the assessee submits that fixed assets were purchased and these credits were outstanding on such purchases and that the same were repaid in the immediately succeeding Assessment Year. When fixed assets are purchased on credit and when the purchase has been accepted, no addition can be made under section 68 of the Act. Anyhow I set aside this issue to the file of the AO with a clear direction that no addition can be made under section 68, if these credits have arises due to credit purchases of fixed assets.
In the result the appeal of the assessee is allowed for statistical purposes.
Pronounced in the Open Court on 29th June, 2016.