YATRA CORPORATE HOTEL SOLUTIONS PVT LTD,GURGAON vs. ACIT CIRCLE-2(1), GURGAON

O R D E R PER ANUBHAV SHARMA, JM: The assessee has come in appeal against the order dated 08.03.2019 passed by the Commissioner of Income Tax (Appeals)-1, Gurgaon (hereinafter referred as “learned First Appellate Authority” or in short “FAA”) in Appeal no. 674/16-17, for the assessment year 2014-15, arising out of assessment order dated 02.12.2016 u/s 143(3) of the Income-tax Act, 1961 (hereinafter referred as the “Act”), passed

Dy. Commissioner of Income Tax, Circle-2, Gurgaon (hereinafter referred in short as “Ld. AO”).

4. The assessee has raised following grounds: “1. The learned Commissioner of Income Tax (Appeals) - 1, Gurgaon [CIT(A)] erred in confirming the addition of Rs.25,39,740 made by the Assessing Officer u/s,68 in respect of following outstanding balances of sundry creditors as on the last of the financial year by holding that there is no real credit balance of the said creditors:- S. No. Name of the Creditor Amount (Rs.) i. Chitra Pat Audio Visual 5,80,400 ii. D.V. Travels Guru Pvt. Ltd. 19,59,304 TOTAL: 25,39,704 Your appellant submits that under the facts and in the circumstances of the appellant’s case the learned CIT(A) ought to have deleted the addition made by the Assessing Officer, 2. The learned CIT(A) erred in confirming the action of the Assessing Officer treating the genuine credit balances outstanding of the sundry creditors Rs.25,39,704 as on the last day of the financial year as unexplained cash credits u/s.68.

3. Your appellant submits that under the facts and in the circumstances of the appellant’s case the learned CIT(A) ought to have held that addition of Rs.25,39,704 u/s.68 is wrongly made and the same ought to be deleted.

5. It can be appreciated that in para 4.1 of CIT(A)’s order he makes following relevant observations; “4.1 Brief facts as recorded in the assessment order are as under: “During the year under consideration, it was noticed that the assessee company had trade payables/creditors amounting to Rs. 25,39,704/-. To scrutinize the genuineness of the creditors outstanding balance the assessee vides notice 27/07/2016 was asked to furnish the ledger confirmation of the creditors. Despite various reminders assessee failed to submit the confirmation and as such show cause notice dated 15/11/2016 was issued to the assessee to furnish the ledger confirmation of the creditors having the outstanding balance of more than Rs. 5,00,000/-. In this regard the assessee vide its submission dated 02/11/2016furnished the details of the creditors which are as under Sr. Vendor PAN Address Amount(Rs.) No. 1. Chitra Pat AANPS2262F H-301 5,80,400 Audio Visual New Rajender Nagar, New Delhi. 2. DV Travels AACCD1707E 802 19,59,304 Guru Eureka Towers, mindspace Mumbai Total 25,39,704

The reply of the assessee has been considered but it is devoid of any merits. The assessee, despite of various opportunities, has not been able to furnish even the basic documents to support its claim. Merely furnishing the details of the creditors does not entitle the assessee to justify its claim. Onus lies upon assessee to discharge its obligation regarding the source of any sum which has been found credited to its books of account. A credit in the assessee’s books of account, signifying a receipt, or a liability, has to be satisfactorily explained, to keep the provision of section 68 at bay.” 6. The order of learned CIT(Appeals) shows that due to failure of assessee to provide confirmation from Chitra Pat Audio Visual and for taking contradictory pleas/reply with regard to D.V. Travels Guru Pvt. Ltd., the additions have been sustained. Apparently there is no other material on record to indicate that the findings were factually incorrect. The Bench is of the considered view that grounds have no substance. Appeal is dismissed.

Order pronounced in open court on 04.05.2023.