2001 (9) TMI 232

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ors were examined on oath and the amounts sworn by them did not reconcile with the sundry credits. (b) The CIT(A) should have appreciated that monetary transactions are crucial and no prudent man will forget even when examined after lapse of sufficient time the amounts due to him or for that matter the amount owed by him to others. (c) The CIT(A) ought to have further appreciated that though not regular books as per accountancy standards, creditors must have kept some noting or record to pursue their claim. (d) The CIT(A) ought to have appreciated that when there is a discrepancy in creditors onus to prove and reconcile the credits was on the assessee which has not been duly discharged. (e) The CIT(A) must have observed further ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....and, the learned counsel for the respondent-assessee submitted that the impugned sundry creditors are the parties from whom purchases have been made by the assessee and that the said creditors were small weavers who did not maintain regular books of accounts. It was pointed out by the counsel for the respondent-assessee that the weavers who have been summoned and examined by the AO have categorically stated that they did not maintain any books of accounts and that it follows from it that the statement given by them are only out of their memory. It has been argued before us that the sundry creditors have by and large confirmed the balance as declared by the assessee and only in few cases the difference have arisen which can be attributed to ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....assessee in his books of account. We have perused the order of the CIT(A) in this regard. It is worth noting that the CIT(A) appreciated the fact that the said trade creditors were never paid in cash and the payments have always been settled by account payee cheques. It is found by the CIT(A) that the balances outstanding to the credit of sundry creditors as on the end year have been paid in the subsequent year. 5. We find from the material before us that the impugned weavers supplied goods to the assessee during the year ending and also in the earlier assessment years. It is a fact that the impugned weavers, who did not have regular books of accounts, were examined by the AO after a considerable amount of time and that the submissions w....