Tax collection at source on purchases removes duplicate withholding obligation, while trade-creditor evidence requires verification before unexplained-credit addition.

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....Outstanding trade-creditor additions may require verification rather than immediate treatment as unexplained cash credits where purchases, corresponding sales and stock are accepted, repayments are undisputed, and additional evidence supports genuine dealings. Additional evidence may be admitted where a supplier's records were unavailable because of fire, subject to assessment verification; no addition should follow if verification reveals no discrepancy. For purchase transactions subject to both tax deduction and collection rules, a buyer need not deduct tax where the seller has already collected tax at source before deduction. Accordingly, the related purchase-payment disallowance was deleted, while the creditor balance was restored for verification.....