2015 (6) TMI 454

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....ibunal and the Tribunal vide its order dt. 29.8.2012 in ITA No. 4000/M/2012 had set aside the order of the Ld. CIT(A) and restored the matter back to him for passing a fresh order. The Tribunal also directed the Ld. CIT(A) for remanding the matter to the AO for necessary enquiry. 3. The dispute revolves around the verification of purchase and genuineness thereof. The impugned parties are as under: S. No. Name of the party Purchase (Rs.) Sundry Creditors (Rs.) 1. Vijay Transport ----  374960 2. Siddhivinayak Corporation 2051744 2004953 3. Hetal Sales Corporation --- 624721 4. Naman Enterprises 1269911 1269911 5. Parvati Transport ---  564895 6. Psanda ....

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....ion 201 VAT Cancelled 3. Naman Enterprises 333 VAT Cancelled 4. Shakti Trading Co. 515 VAT Cancelled 5. Sandesh Sales Corpn.    VAT Cancelled 6. Navdeep Trading Co. 337 VAT Cancelled 7. Padmavati Corporation   VAT Cancelled 8. Om Corporation 359 VAT Cancelled   3.2. The AO formed a belief that the assessee has failed to establish the genuineness of the purchases. Relying upon certain judicial decisions, the AO at para 4.7 of his order finally concluded that the total purchases claimed by the assessee amounting to Rs. 90,07,915/- is unexplained expenditure u/s. 69C of the Act and added the same. The AO further treated Rs. 61,53,921/- being....

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....that is left to be paid is only Rs. 36,29,281/-. Since the assessee has not brought any confirmation with respect to these balances, the Ld. CIT(A) agreed with the view of the AO that this is a case of remission of liability. However, considering also the fact that the part payments have been made, the Ld. CIT(A) gave relief of Rs. 25,24,640/-and confirmed the addition to the extent of Rs. 36,29,281/-. 5. Aggrieved by these decision of the Ld. CIT(A) both Revenue and assessee is before us. 5.1 Let us first take the appeal of the Revenue. The sole grievance relates to the deletion of the addition made on account of unexplained expenditure u/s. 69C in relation to the purchases of Rs. 90,07,915/-. Section 69C read as under: "Where in any....

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....l filed by the Revenue is dismissed. 5.4. Coming to the appeal filed by the assessee, which is in relation to the creditors added as cessation of liability u/s. 41(1) of the Act. The list of creditors read as under: S. No. Name of creditor Creditors added to income.   Shree Enterprises   1. Hetal Sales Corporation            624,721   2. Sandesh Sales Corpn.               298,469   3. Shakti Trading Co.                     851,490 1,774,680/-   ....