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2014 (10) TMI 496 - AT - Income TaxAddition of various unexplained creditor Held that:- CIT(A) rightly perused the record and information u/s. 133(6) and also gone through the statement of account of assessee in the books of M/s. Jai Traders as obtained by the AO on 25.11.2010 as well as assessees books of account showing the account of Jai Traders, and it was found that difference is explained which arise because of the contra entry on account of return of cheques The order of the CIT(A) is upheld Decided against revenue. Cash payment u/s 40A(3) disallowed Violation of principles of natural justice - Held that:- The AO made addition for cash payments noted by this party in their accounts - The bill No. 3014 was not brought on record - No copy of accounts of M/s. Mohit Traders received directly by the AO has been made available to the assessee - The assessee denied to enter into any transaction with this party and also sought opportunity from the AO to cross examine this party for making the entry of cash payments in the books of account, but the AO did not supply copy of statement of M/s. Mohit Traders to the assessee and gave no opportunity to cross examine this party - Therefore, principles of natural justice have been clearly violated in the matter - Since no incriminating material is confronted to the assessee and no cross examination of the party is allowed to the assessee, therefore, such entries in the books of account of M/s. Mohit traders cannot be read as evidence against the assessee relying upon Kishan Chand Chelaram vs. CIT, [1980 (9) TMI 3 - SUPREME Court] Decided against revenue. Addition of bogus creditors Held that:- The purchases are properly entered in the accounts which are supported by vouchers and payments have been made through banking channel - The address of M/s. Marvel Tea Estate India Ltd. is of Jabalpur (MP), but the AO is stated to have issued the summon at Jaipur (Raj.) - The AO accepted the books of account and no discrepancies have been pointed out in the purchase and the book results and the purchases have also been accepted by the department of VAT - The purchases are supported by vouchers and bank statement - CIT(A) specifically noted that no query has been raised regarding these creditors by the AO for holding the same to be in-genuine - such finding itself is sufficient to reject this ground of appeal of the Revenue the order of the CIT(A) is upheld Decided against revenue. Deletion of freight payment expenses Held that:- CIT(A) on examination of record rightly found that for the balance amount of freight, the details are provided which is given in purchase account and was filed before the AO at assessment stage - the addition is unjustified - The accounts submitted by the assessee give party-wise payment of freight expenses the order of the CIT(A) is upheld Decided against revenue.
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