REGARDING CREDITORS:

This query is : Resolved

s zafarulla khan (Querist)
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18 March 2009 REGARDING CREDITORS:
for the assessement year 2003-2004 is sellected for scrutiny, and the AO asked for the confirming the balance , then the assessee produced the confirmation letter issued by the creditors confirming the balance issued in that year. Then the AO asking the Existance of the creditors in the Year 2008-09. and in this year a creditors assessee do know where is the creditors.since the assessee have settelled this account by raising sale bill in the year 2009-2010.
in this case what may be the treatment of creditors by the AO.

SANJAY VERMA

SANJAY VERMA (Expert)
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21 March 2009 It entirely depends on the A.O.

taxindiaconnect

taxindiaconnect (Expert)
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30 April 2009 The onus of prvoving the identiy and it's genuiness is on the assessee and hence in this case the AO may treat the credit amount as the income of the assessee as the idenity and genuiness may not be proved.

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