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2014 (1) TMI 836 - ITAT CUTTACKAddition made u/s 68 of the Act – Unexplained cash credit – Sundry creditors on account of paddy procurement – Held that:- Though the AO has issued summons to four persons only two of them had appeared - Once the sundry creditor has been identified by the assessee and he has responded to the notice issued by the AO u/s. 131 of the Act and he has specifically confirmed the transaction with the assessee and the transactions are also substantially through their bank accounts, it cannot be said that the balance as standing in the account of the sundry creditor with whom the assessee is having the business transactions is not genuine - the addition made by the AO in respect of the sundry creditors Shri P. C. Giri and Shri Sudhanshu Sekhar is unsustainable as the assessee has discharged his onus for proving the transaction of the sundry creditor and no evidence whatsoever has been found to dislodge the evidence as produced by the assessee and the confirmation as given by the said two sundry creditors. The two sundry creditors were out of station when the notices had been issued by the AO and the assessee would be able to produce the said two sundry creditors before the AO for examination - the issue in respect of the sundry creditors Shri Atul Kr. Jena and Shri Gouri Shankar Nayak is liable to be restored to the file of the AO for readjudication – Decided partly in favour of Assessee - the appeal of the assessee has been disposed of the assessee has withdrawn its stay petition – Decided partly in favour of Assessee.
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