Non submission of creditors details cannot be ground for making addition if books are seized by revenue

As regarding the other addition of Rs.34,82,972/- on account of Sundry creditors the ld. CIT(A) has deleted the same by relying upon the decision of the Hon’ble Apex Court in the case of CIT vs. Sugauli Sugar Works (P) Ltd. 236 ITR 518 (SC) without going into the facts of the case. In this case the assessee has not filed even the details of the sundry creditors and when the Bench asked for the list of sundry creditors outstanding since several years, the ld. Counsel for assessee has submitted that the books of account relating to A.Yr. 1981-82 are already seized by the revenue and lying with the revenue authorities till now.

Therefore he is unable to submit the details. Keeping in view of the above and since the assessee has filed the additional evidence in support of the demand of the municipality tax we consider it fit to set aside the order of the ld. CIT(A) and restore both the matters to the file of AO to re-decide the same afresh after giving a reasonable opportunity of being heard to assessee and after giving the certified copy of the relevant documents which was seized by the revenue to the assessee in order to substantiate its claim. We order accordingly.

 INCOME TAX APPELLATE TRIBUNAL, KOLKATA

ITA No.1256/Kol/2010 – Assessment Year: 2007-08

I.T.O.  Vs  M/s.Bajrangbali Engineering Co.Ltd.

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