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2009 (3) TMI 1003 - HC - Income TaxDisallowance of expenditure - purchases of raw material - genuineness of transactions not proved - manufacturer of tractor lights - CIT(A) allowed the appeal and remanded case back to AO for fresh consideration - second round AO allowed the expenses claimed in respect of payments made to five out of the ten parties - remaining five parties it was found that three parties could not be served at given addresses but other two parties who had appeared - Tribunal has accepted the version of the assessee, believing in the genuineness of the transactions namely, purchase of raw material from five parties. HELD THAT:- The Tribunal took into consideration some other factors as well and the cumulative effect of all these factors clearly established that they were genuine suppliers who had received payment by means of Account Payee cheques. The Tribunal rightly concluded that they were small dealers/job workers and were mainly dealing with the assessee only. It is also pointed out by the Tribunal that transactions were entered into with these suppliers during the financial year ending on 31-3-1996 and an inquiry was conducted in the year 2002 and it was not unusual for such small parties to have left in between. Thus, these two cases are at par with those in respect of which expenditure is allowed. The reason for disallowing expenditure in respect of other four parties was that when the notices were sent they were not available. we are of the opinion that even in their absence the assessee had produced sufficient material to show payments, namely the bank accounts of such parties. We are constrained to note that if the summons are not issued to those parties or the same could not be served at the given addresses, AO could have obtained their addresses from the banks as the bank statements were produced and could have made an endeavour to serve those parties at the said addresses. That the finding of fact arrived at by the Tribunal is plausible and based on evidence. There is no perversity in this finding. Hardly any question of law arises which needs to be determined in the present appeal. We, therefore, dismiss this appeal as being devoid of any merits.
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