DCIT Vs Anbu Infratech Pvt. Ltd. (ITAT Chennai)
ITAT Chennai held that CIT(A) rightly deleted the addition under section 69C of the Income Tax Act towards trade creditors since assessee clearly established the trade creditors payable was outstanding and clearly allowable and not outside the books of accounts or cash.
Facts- The present appeal is preferred by the revenue. The only issue in this appeal of the Revenue is against the order of CIT(A) deleting addition made by the AO towards unexplained expenditure u/s.69C of the Act in respect of trade payable settled outside books of accounts.
Conclusion- Held that in view of the facts and findings recorded by the CIT(A), which remain undisputed, we are of the view that difference in the amount of sundry creditors as on 31.03.2018 was explained by Shri A.N.Bhoopathy as mentioned in the seized loose sheets in his statement as payment made to Shri Paranthaman concerns outside the books of accounts. Hence, as per books of account, the assessee has clearly established by evidences that trade creditors payable of Rs.4.00 crores to Shri Paranthaman concerns was outstanding and clearly allowable and not outside the books of accounts or cash. Hence, we confirm the order of the CIT(A) deleting the addition. In the result, appeal of the Revenue is dismissed.
