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2017 (8) TMI 1377 - AT - Income TaxAddition u/s 40A - cash repayment of loan - proof of urgency for cash payment - payment exceeding permissible limits - Held that:- There is no violation of provisions of section 40A(3) of the Act. As it is abundantly clear from the facts that the assessee has paid ₹ 6,03,150/- to Shivam Enterprises on the instruction of its creditor M/s Charco Electronics Pvt. Ltd, through account payee cheque. There is no cash payment at all. Therefore, we are of the view that addition made by assessing officer and confirmed by ld CIT(A) needs to be deleted. Accordingly, we delete the addition - Decided in favour of assessee. Transfer the amount for sundry creditor to loan creditor with the motive to hoodwink the revenue - Held that:- Assessee’s creditor M/s Rollataniers Niryat Pvt. Ltd. has been renamed in the books of assessee as a loan creditor and just to rename the liability does not mean that the liability has been paid by the assessee. The same liability remained in the books of accounts of the assessee and the payment has not been made by the assessee. The AO also did not dispute the fact that the liability of ₹ 70,00,000/-, did not exist in the books of the assessee. Just because that the trade creditor has been renamed by the assessee, as unsecured loan does not mean that the assessee has paid any liability or has done any illegal activity to conceal the particulars of income. Payment of ESI and payment of EPF after due date and in violation of provisions of section 36(1) (va) - Held that:- In the instant case the assessee has paid ESI liability of ₹ 2813/- and provident fund liability of ₹ 63299/- within the due date of filing the income tax return. It is a sufficient compliance, therefore, respectfully following the decision of jurisdictional Kolkata High Court in case of CIT Vs. Vijay Shree Ltd. (2011 (9) TMI 30 - CALCUTTA HIGH COURT), we are of the view that there is no any infirmity in the order passed by ld. CIT(A). Hence, we confirm the order passed by ld. CIT(A).
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