2014 (1) TMI 836

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....and Shri N. K. Neb appeared on behalf of the revenue. 3. It was the submission that the issue in the appeal was against the order of Ld. CIT(A) confirming the addition made by AO by treating four of the sundry creditors on account of paddy procurement as unexplained cash credit u/s. 68 of the Act. It was the submission that during the course of assessment, the AO had noticed that the assessee had shown five sundry creditors towards purchase of paddy to the extent of Rs.45,66,400/-. It was the submission that the AO had issued notices u/s. 131 of the Act to the five creditors. It was the submission that two of the creditors namely, Shri Purna Chandra Giri and Shri Sudhanshu Sekhar had appeared before the AO and their statements had als....

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....reditors namely Shri Atul Kr. Jena and Shri Gouri Shankar Nayak was restored to the file of the AO for re-examination. It was the submission that the said two sundry creditors were out of station when the AO issued notice u/s. 131 of the Act to them. It was the submission that the assessee would undertake to produce the said two sundry creditors if an opportunity was granted before the AO. 4. In reply, the Ld. DR submitted that there was no evidence by the middle man in respect of the procurement of paddy by them from the farmers. It was the submission that the genuineness of the transaction between the farmers and the middle man being the sundry creditors had not been proved. It was the further submission that even the sundry creditors ....

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....espect of the sundry creditors Shri P. C. Giri and Shri Sudhanshu Sekhar is unsustainable insofar as the assessee has discharged his onus for proving the transaction of the sundry creditor and no evidence whatsoever has been found to dislodge the evidence as produced by the assessee and the confirmation as given by the said two sundry creditors. 6. In respect of the sundry creditors Shri Atul Kr. Jena and Shri Gouri Shankar Nayak as it has been accepted by the assessee that the said two sundry creditors were out of station when the notices had been issued by the AO and the assessee would be able to produce the said two sundry creditors before the AO for examination, we are of the view that the issue in respect of the sundry creditors Shr....