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2016 (4) TMI 660 - AT - Income TaxAddition of unexplained cash credit - Held that:- From the facts on record and also from the Balance Sheet of the firm from assessment year 1994-95 onwards and at least till assessment year 2003-04, it is found that the liability of the sundry creditors remains almost the same or a little more right from assessment year 1993-94 onwards. Therefore, it can be concluded that the assessee never supplied any good to the alleged creditors. It is a fact that no creditor will like not to recover the credit for such a long time. If these creditors were other than the partners of the assessee themselves they would have certainly tried to recover the advances or at least would have filed suit for recovery of the same: In fact, as mentioned above, since the unaccounted money of the partners was credited in the name of three alleged creditors, the claim for recovering the advance given was never made. As in the case of Rameswar Das Suresh Pal Cheeka,[2006 (12) TMI 492 - HIGH COURT OF PUNJAB & HARYANA], wherein it is held that if there are cash credit entries in the books of the firm in which the accounts of the individual partners exist and it is found as a fact that cash was received by the firm from its partners, then in the absence of any material to indicate that they were profits of the firm, it could not be assessed in the hands of the firm. In the present case before us also there is no finding that the cash introduction is on account of the profit of the firm but actually these are partners’ money. Respectfully following the precedents and in the given facts of the case, we delete the addition - Decided in favour of assessee Charging interest u/s. 220(2) - Held that:- In the facts of the present case in which the original assessment order has been set aside by the Tribunal and matter restored to the Assessing Officer for fresh assessment and therefore in view of the circular of CBDT No.334 Dt.3.4.1982, the interest can be levied only from the date of default of the demand notice issued in pursuance of the fresh assessment order. The order of CIT(A) holding that interest under section 220(2) has to be levied from the date of default as per the original assessment order therefore cannot be sustained. The same is set aside - Decided in favour of assessee Addition of bogus purchases - Held that:- We find that the assessee has produced purchase bills, bank account, statement pertaining to purchase price and issuance of cheques. The assessee also produced photo copy of stock register and purchase register maintained by him, which were not verified by the AO properly. These were produced before us also by the assessee in its paper book and stating the reason that all the entries are tallying. Since this is a very old matter pertaining to AY 1994-95 i.e. almost 22 years old and the assessee is able to produce copy of purchase register and copy of stock registers along with purchase bills and bank statement pertaining to purchases, the purchases cannot be held to be bogus and the same are accepted as genuine - Decided in favour of assessee
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