A.o. made addition u/s.69c of the i.t.act, 1961
This query is : Resolved
23 April 2013
Sir,
My client has shown 4 creditors for goods purchased (each exceeding Rs.1.5 lacs)total Rs.6 lacs pertaining to F.Y.2009-10, my client's case was selected for scrutiny assessment and accordingly A.O. issued notice u/s.133(6). Creditors has furnished confirmation/contra account of my client reflecting therein as no amount is recoverable from my client. In other words creditors had shown "NIL" balance.
Assessment was finalized and A.O. made addition of those four creditors on the basis of confirmation/contra account furnished by those four creditors-CONSIDERED AS BOGUS CREDITORS. My appeal is pending before the Commissioner of Income Tax (Appeals).
I had filed reply to SCN to give opportunity to cross examine those 4 creditors but at the relevant times A.O. had not given opportunity to cross examine creditors.
You are requested to kindly guide me in this matter on the merits of the case with relevant citation on this peculiar issue.
Thanking you.
My client has shown 4 creditors for goods purchased (each exceeding Rs.1.5 lacs)total Rs.6 lacs pertaining to F.Y.2009-10, my client's case was selected for scrutiny assessment and accordingly A.O. issued notice u/s.133(6). Creditors has furnished confirmation/contra account of my client reflecting therein as no amount is recoverable from my client. In other words creditors had shown "NIL" balance.
Assessment was finalized and A.O. made addition of those four creditors on the basis of confirmation/contra account furnished by those four creditors-CONSIDERED AS BOGUS CREDITORS. My appeal is pending before the Commissioner of Income Tax (Appeals).
I had filed reply to SCN to give opportunity to cross examine those 4 creditors but at the relevant times A.O. had not given opportunity to cross examine creditors.
You are requested to kindly guide me in this matter on the merits of the case with relevant citation on this peculiar issue.
Thanking you.
26 April 2013
the AO collected information us 133(6). Is there any power under that section to cross examine? if he has issued summons , then your point would be correct. Any other opinion?
30 June 2013
Since addition has been made and the assessment has been finalised you have to file an appeal and in appeal you raise this issue by producing the photo copies of the bills on the basis of which you have passed the credit. Request the CIT(A) for remand report and also express for cross verification of the amounts and call for cross examination of the creditors and then request the AO to submit the remand report
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