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2015 (11) TMI 1540 - AT - Income TaxAddition made on account of bogus creditors - Held that:- We find lot of force in the arguments of the Learned AR in respect of this addition that when the trading results are accepted by the Learned AO based on revised return filed by the assessee, there is no scope for disputing the veracity of the trade creditors as admittedly the trade creditors had emanated only out of purchases made by the assessee. Moreover, we find that in any case, there is no scope for making any addition towards the discrepancies, if any, in the opening balance of sundry creditors in the assessment year under appeal. We find that the Learned CITA had given a finding that the sundry creditors in Asst Year 2006-07 has been accepted by the Learned AO and not disputed. In these circumstances, we find no infirmity in the order of the Learned CIT-A in deleting the addition - Decided against revenue Applicability of provisions of section 194H read with section 40(a)(ia) - Held that:- We are in total agreement with the finding given by the Learned CITA that the subject mentioned payments made by the assessee are only discount paid to the purchasers of recharge coupons though wrongly categorized as commission on sales in the books of accounts. We also agree that the nomenclature in books of accounts would not be the determinative factor for understanding the real nature of the transaction and it is well settled that substance would always prevail over its form. We hold that in these facts and circumstances, the payments made by the assessee is in the category of principal to principal and the provisions of section 194H of the Act would come into play only when the payment is from principal to agent. Hence we find no infirmity in the order of the Learned CITA in this regard.- Decided against revenue
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