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2014 (12) TMI 22 - CALCUTTA HIGH COURTAddition of undisclosed cash purchases and bogus sundry creditors – Held that:- The Tribunal was rightly of the view that the addition was made by him by doubting the purchases having been made by paying cash - the assessee has filed copies of respective purchase bills/challans and the details of payment made by account payee cheques drawn in favour of respective creditors and copies of bank statement of respective parties have also been filed - details of ledger account and copies of bill clearly indicate that the purchases were made from these parties and payments were made through bank in favour of these parties - once the goods ordered had been supplied satisfactorily and payments had been made by account payee cheques, the assessee is not supposed to keep track of the addresses of suppliers - these creditors are not old creditors and also paid by account payee cheques after the purchases were materialised so as to presume that there was cessation of liability. AO has not brought any material to establish that the asssessee has made purchases in cash - material on record proved that the payments were made by account payee cheques, which were duly debited in the assessee’s bank account and credited in the bank accounts of the suppliers - AO himself verified the payments made by the assessee and such payments were duly credited in the bank account of the respective parties – the tribunal rightly was of the view that the payments were made by account payee cheques which were duly debited to the assessee’s bank account and credited in the bank accounts of the suppliers and the AO had presumed and made the addition by observing that the assessee had purchased goods by making cash payments – thus, no substantial question of law arises for consideration – Decided against revenue.
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