TaxTMI 
TaxTMI 
2023 (7) TMI 1200
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...., 1961 (hereinafter referred to as 'the Act') relating to the Assessment Year (A.Y) 2014-15. 2. The brief facts of the case is that the assessee is an individual and Proprietor of Nishra Enterprise dealing in waste craft paper. For the Assessment Year 2014-15, the assessee filed its Return of Income on 29-11-2014 declaring total income of Rs. 3,55,840/-. The return was taken up for scrutiny assessment, as large amount of sundry creditors with respect to turnover of the assessee Firm compared to the preceding year. The assessee claimed sundry creditors amounting to Rs. 6,15,17,916/- for the Assessment Year 2014-15, whereas the previous Assessment Year 2013-14, the assessee had shown creditors of only Rs. 84,23,451/-. The assessee was give....
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....s. Thus the assessee submitted that the copy of accounts of each creditor from the books of the assessee and contra accounts with address and PAN Number which are duly reconciled. The Ld. CIT(A) admitted the above documents as the additions go to the root of the controversy involved and however called for a Remand Report from the A.O. The A.O. objected to the acceptance of additional evidences and also stated that the assessee failed to produce supporting bills/vouchers for the purchases made from the parties and also not filed bank details and proof of payments. Whereas the assessee in its Rejoinder to the Remand Report, furnished copies of Audited Accounts, Purchase Bills, Contra Accounts with Bank Statements. After considering the above ....
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.... is made. (d) The copy of accounts of M/s. Om Enterprise from the books of M/s. Nishra Enterprise Le. assessee's books and the copy of Accounts of M/s. Nishra Enterprise from the books of M/s. Om Enterprise duly signed and confirmed by the party for AY. 2015-2016 with Bank statements to show that the payment is made. 3.1 Further, it may please be noted that the sales, debtors and stocks as per Balance Sheet as on 31-03-2014 is as under: Particulars A.Y. 2013-2014 A.Y. 2014-2015 Sales 1,42,40,576 6,04,58,664 Debtors 87,52,605 5,04,62,195 Closing Stock 7,735 1,16,42,577 Creditors 84,23,451 6,15,17,916 3.2 From the above, it is seen that the increase in creditors is du....
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....ditors, the PAN and full addresses of the creditors, copy of account of creditors in the books of account of appellant and the proof that the appellant has continuous trading relationship with the creditors All such evidences are corroborative and cannot be manipulated at this stage. The AO had opportunity to cross verify any information if he had desired during remand proceedings but chose the path of least resistance and sent remand report in a very routine manner The independent corroborative evidences placed on record during remand proceedings cannot be ignored. The ratio in the case of Jute Corporation of India Ltd. 187 ITR 688 (SC) is applied to give fresh look once again to the evidences contained in paper book on record. In my opini....
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....f the assessee firm and contra accounts, few sample purchase bills from Kingston Peptech P. Ltd. and copy of accounts of Om Enterprise and contra entry and few sample purchase bills from Om Enterprise which are running to 99 pages. Thus the Ld. Counsel submitted that Ld. CIT(A) after considering the additional evidences filed by the assessee, after due consideration of the same with corroborative evidences on record, deleted the addition made on account of sundry creditors as bogus creditors. 6.1. The Ld. Counsel also submitted before us Jurisdictional High Court judgment in the case of CIT Vs. Nangalia Fabrics Pvt. Ltd. reported in [2013] 40 taxmann.com 206 wherein it was held "that where purchase were supported by bills, entries were m....
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.... of the HDFC Bank account makes it very clear regular cheque payments were made by the assessee through the continuation of the business with Kingston Peptech P. Ltd. as well as the Om Enterprise and various other suppliers. After considering the above material on record, the Ld. CIT(A) deleted the addition made on account of bogus sundry creditors of Rs. 5.3 crores, which is in our considered opinion does not require any interference. Further the purchasers are supported by bills entries in books of account and made payment by cheques. The Assessing Officer did not find any inflation in purchase price, but the addition made only on the ground that the assessee failed to furnish the details during the ex parte assessment proceedings. 8. ....