GARUDA MARKETING ASSOCIATES,THRISSUR vs. THE ITO WARD 2(2), THRISSUR

ITA 211/COCH/2023Status: DisposedITAT Cochin13 February 2024AY 2014-15Bench: Shri Sanjay Arora (Accountant Member), Shri Manomohan Das (Judicial Member)7 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal held that while the assessee's conduct was uncooperative, the payments made in the succeeding year through banking channels warranted further verification. The matter was remitted to the AO for verification of payments for 12 out of 14 creditors.

What were the facts?

The assessee, a wholesale dealer, had sundry credits of Rs. 34.73 lakhs in its balance sheet. The assessee failed to provide confirmations for these creditors during assessment and appeal proceedings. The Assessing Officer added the amount to the returned income.

What were the issues?

Whether unconfirmed sundry credits can be added to income, and if payments made in the subsequent year can be considered as evidence of existing liability.

Which sections of the Income-tax Act were involved?

Section 68,Section 41(1),Section 69A,Section 28(i)/(iv)

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Income Tax Appellate Tribunal, COCHIN BENCH, COCHIN

Before: Shri Sanjay Arora & Shri Manomohan Das

For Respondent: Smt. J M Jamuna Devi, Sr. DR
Hearing: 16.11.2023Pronounced: 13.02.2024

Per Sanjay Arora, AM The instant appeal by the Assessee is directed against the order dated 23.01.2023 by the Commissioner of Income-tax, NFAC [CIT(A)], partly allowing the assessee’s appeal contesting it’s assessment under section 143(3) of the Income Tax Act, 1961 (the Act) dated 23.11.2016 for Assessment Year (AY) 2014-15. 2. The brief facts of the case are that the assessee-firm’s, a wholesale dealer in food products, etc., balance sheet as at the end of the relevant year reflected sundry credits at Rs.34.73 lakhs comprising 14 creditors, which the assessee was in assessment proceedings required to confirm. The assessee, despite sufficient opportunity do so,

The order continues below.

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