Case Law Details
Imran Mohammed Iqbal Vs ITO (ITAT Ahmedabad)
Considering the above facts, vis-à-vis the outstanding balance relating to M/s. Prakash Gold amounting to Rs. 12,05,026/-, the addition having been made finding it to be bogus, since the consistent finding of fact is that the transaction was entered into by the assessee with the said party not in the impugned year but in earlier year i.e in A.Y. 2014-15 ,the addition in any case could not have been made in the impugned year but only in the year in which the liability arose i.e. A.Y. 2014-15. Therefore the addition on account of outstanding liability pertaining to Prakash Gold amounting to Rs. 12,05,026/- is directed to be deleted.
As for the liability on account of M/s. Aarti Jewelers, the ld. Counsel for the assessee has contended that the said liability was discharged in the succeeding years through banking channels. Copy of the ledger account of the parties was also placed before us.
In view of the same therefore there is no question of holding the said party to be ingenuine and the addition made on this count is directed to be deleted.
FULL TEXT OF THE ORDER OF ITAT AHMEDABAD
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