ADDITIONS OF SUNDRY CREDITORS AND DEBTORS AS NON-GENUINE

This query is : Resolved

maharamchandra (Querist)
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18 May 2010 Ld. Assessing Officer has passed assessment order U/s.143(3) of the I.T. Act, 1961 making addition in respect of sundry creditors and debtors as non-genuine, shown in the balance sheet and huge demand U/s.156 is raised toward payment of tax on assessed income.

Aggrieved by the order of A.O. assessee has preferred appeal before comm.(A)

Kindly express your expert opinion based on decided case laws, we also anticipate any landmark judgement on this issue.

CA Shiv

CA Shiv (Expert)
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18 May 2010 Onus of proving identity of creditor, his creditworthiness and genuineness of transaction is on assessee.( CAse law: Surender Kumar v. ITO, Appeal No.:, ITA No. 3658/Del/2007, Decided on: ITA No. 3658/Del/2007)

On the base to the above, you can prove that the creditor and debtors are genuine if they are really genuine...
I had dealt before similar case before CIT(A). There are many issues u need to prove...