TaxTMI 
TaxTMI 
2014 (12) TMI 22
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....law and was not justified in dismissing the appeal filed by revenue on the issue of addition of Rs. 30,93,325/- made by the Assessing Officer for undisclosed cash purchases and introducing bogus sundry creditors. ii) Whether on the facts and in the circumstances of the case the Learned Tribunal erred in law and was not justified in dismissing the appeal filed by revenue on the issue of addition of Rs. 30,93,325/- made by the assessing officer for undisclosed cash purchase and introducing bogus sundry creditors is perverse keeping in view the fact that the Assessing Officer had irrefutably proved these facts after making an extensive enquiry. iii) Whether on the facts and in the circumstances of the case the Learned Tribunal erred in law a....
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.... aside." Heard Ms. A. G. Ghutghutia, learned Advocate appearing for the appellant/petitioner, and Mr. Ananda Sen, learned Advocate for the respondent assessee. In support of her contention, Ms. A. G. Ghutghutia relied upon two decisions, one is reported in 2007 - (291) ITR - 0278(SC) in Civil Appeal No. 2540 of 2007 (Commissioner of Income Tax V. P. Mohanakala & others) and the other is unreported judgement in ITA 493 of 2013 (The Commissioner of Income Tax - IV Vs. Empire Builtech Private Ltd which are of no help to the Revenue in the facts and circumstances of this case. We find that the Assessing Officer had called for information from the Branch Manager, Vijaya Bank, N.S. Road Branch, Kolkata-1 of which the assessee was the constitut....
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....bsp; 6.2. In respect of some of the parties the opening balances are also carried forward from the earlier years, to whom the payments were made during the year by account payee cheques. Details of ledger account and copies of bill clearly indicate that the purchases were made from these parties and payments were made through bank in favour of these parties. Merely because after 2-3 years, the parties were not available at the given addresses, the AO presumed and made the addition by observing that the assessee has purchased goods by making cash payments. Once the goods ordered had been supplied satisfactorily and payments had been made by account payee cheques, the assessee is not supposed to keep track of the addresses of supp....