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2015 (5) TMI 1256 - AT - Income TaxBogus creditors - addition in respect of sundry creditors unexplained - CIT(A) deleted the addition - HELD THAT:- No illegality and infirmity has been committed by the CIT(A) in deleting the addition of sundry creditors, which did not arise during the impugned assessment order in their opening balance from the earlier assessment year 2005-06. As per the provisions of section 68, any amount found credited in the books of assessee can be added in the previous year relevant to the assessment year, in case, the assessee fails to prove the nature and source of such credit, in which these amounts arose are credited. Since the amounts were not credited in the impugned A.Y., therefore, in view of the decision of Sridev Enterprises [1991 (1) TMI 52 - KARNATAKA HIGH COURT] we confirm the order of the CIT(A) deleting the said addition. Bogus purchase - Notice issued u/s 133(6) was sent, which was returned unserved - CIT(A) deleted the addition - HELD THAT:- As noted that in this case the sales shown by the assessee has duly been accepted by the AO. In our opinion, the assessee cannot make the sales until and unless the purchase has been made by the assessee. AO has not rejected the books of accounts but made the addition towards the bogus purchase. The payment has been made to these parties in the subsequent year, which has not been dispatched by the Revenue. It is not a case where the accounts has been rejected or the profit has been estimated. We, therefore, do not find that it is a fit case, which warrants our interference. We accordingly confirm the order of the CIT(A) deleting the addition. Appeal filed by the Revenue is dismissed.
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