Case Law Details
Sudarshan Nirman Co Vs ITO Ward 3(5) (ITAT Mumbai)
ITAT Mumbai held that non-receipt of confirmation from the sundry creditors under section 133(6) of the Income Tax Act cannot result into addition since parties are identified, transaction of purchase of land is accepted and reason for outstanding amount is explained.
Facts- The assessee is a partnership firm carrying on the business of builders and developers, filed its return of income at a total income of Rs.3,10,736/-.
This return was processed and taken up for scrutiny under limited scrutiny and the reason of scrutiny was large investment in property and large increase in sundry creditors, received the notice u/s 143(2) of the Act.
The assessee submitted the details of the purchasers etc. and of the sundry creditors. As assessee could not furnish confirmation and PAN of the parties as same was not available at that time. In absence of any such evidence, the sundry creditors amounting to Rs.2,44,85,512/- were added to the total income and consequently assessment order u/s 144 r.w.s 143(3) of the Act was passed determining the total income at Rs.2,47,96,252/-.
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