ACIT CIRCLE-I, FARIDABAD, FARIDABAD vs. KALI CHARAN SHARMA, NEW DELHI

This appeal by the Revenue is preferred against the order of the ld. CIT(A) -10 New Delhi dated 10.12.2018 pertaining to Assessment Year 2014-15.

The sum and substance of the grievance of the Revenue is that the ld. CIT(A) erred in deleting the addition of Rs. 3,17,20,368/- being non- genuine sundry creditors.

Briefly stated, the facts of the case are that during the course of scrutiny assessment proceedings, the assessee was asked to furnish evidences in respect of 11 creditors, who, in the opinion of the Assessing Officer, appeared to be non-genuine.

On receiving no plausible reply alongwith any documentary evidences, the Assessing Officer made addition of Rs. 3,17,20,368/-.

When the matter was agitated before the ld. CIT(A), it was explained that there were duplicate entries, which resulted into double addition. It was further explained that in most of the creditors, there were opening balances and opening balances cannot become income of the assessee for the year under consideration.

In so far as the evidences are concerned, the assessee filed documentary evidences to prove to prove the genuineness of the creditors. On perusal of the documentary evidences, the ld. CIT(A) was of the opinion that since the corresponding sales have been accepted, genuineness of the creditors cannot be doubted with and deleted the addition.

When the appeal came up for hearing before this Bench on 04.08.2022, this Bench asked the ld. DR to call for remand report from the Assessing Officer. Today, the ld. DR submitted the report of the Assessing Officer dated 09.09.2022. A perusal of the same shows that the Assessing Officer concluded as under:

Since in the remand report the Assessing Officer has accepted the genuineness of the creditors, we do not find any reason to interfere with the findings of the ld. CIT(A).

In the result, the appeal of the Revenue in is dismissed.