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2015 (3) TMI 1262 - AT - Income TaxAddition u/s 41 - Held that:- Assessee was made purchases from M/s. Sai Shakthi Minerals, M/s. Dhanalakshmi Logistics in the year ended 31/03/2008. A small amount was paid in April 2008 and balance thereof as outstanding creditors since then. This amount was written off in the year ended 31/03/2011 and offered taxation. Learned AR has produced copies of ledger accounts of these two parties at page Nos. 11-14 of the paper book wherein in the year under consideration, the assessee has written off of this amount in his books of accounts. Similarly, in respect of Dhanalakshmi Logistics, the assessee has written off of this amount and tax on that amount has been paid. We find that assessee has written off of this amount in his books of accounts and paid due taxes, therefore, we are of the view that no addition can be made. In respect of Transport Creditors M/s. Vinayak Enterprises, M/s. Aniketh Enterprises, M/s. Hanuman Traders, M/s. Veerabhadreshwara Enterprises, we find from the paper book wherein the assessee has submitted the copies of the bank account wherein payment has been made to transport creditors through bank. The balance of small amount has been written off. The payment has been made through bank, confirmation letters and income tax returns in this regard have not been considered by the Ld. CIT(A). In respect of confirmation letter when the assessee paid this amount through banking channel, we are of the view that this party do exists at a relevant time. The Department has also accepted the written off for the same party. Therefore, in our opinion, no addition can be made u/s. 41(1) of the Act. In respect of Aniketh Enterprises, Hanuman Traders & Veerabhadreshwara Enterprises - The assessee has made the payment through RTGS, necessary information was given to the Assessing Officer and the Ld. CIT(A), therefore in our opinion, no addition can be made. The assessee has also filed the acknowledgement of the copy of the return filed by those parties. If the transport contractor had left the residence and they were not traceable, it is proved from the record that they are transport contractors, therefore in our opinion, no addition is required, hence, we delete the same. - Decided in favour of assessee
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