ITO v. M.D. House Build. (2023) 199 ITD 153 (Surat) (Trib.)

S. 68 : Cash credits-Purchase of material-Payments were made in subsequent years-Deletion of addition is affirmed. [S. 133(6)]

Assessing Officer held  that assessee had not paid any amount during relevant financial year and, further, some of these creditors had not replied to notices under section 133(6) issued upon them and some notices were returned with remarks like incomplete address or not found hence made addition under section 68 of the Act. CIT (A)  held that all details of creditors were furnished by assessee before Assessing Officer and  in subsequent year most of payments were made and this was not doubted by Assessing Officer. Once payment in subsequent assessment year was accepted in scrutiny assessment as genuine, same could not be left as treated in-genuine especially when the   TDS was deducted  against payment of labour contractors wherever applicable. On appeal the Tribunal affirmed the order of the CIT(A).  (AY. 2014-15)