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2018 (9) TMI 1419 - AT - Income TaxAddition under the head “sundry creditors” - addition on account of unexplained credit - Held that:- In the present case of the assessee, neither the Assessing Officer nor the ld. D.R. at the time of hearing disputed the purchases made by the assessee and once purchases are not doubted, in such a scenario question of creditors being non-genuine does not arise. As held in CIT vs. Orissa Corporation Pvt. Ltd. [1986 (3) TMI 3 - SUPREME COURT], it was the duty of the Assessing Officer to ensure production of those creditors before him and for the deeds of his inaction, assessee cannot be held liable. Assessee has always complied with the requirements of law before the Revenue authorities, meaning thereby they have filed additional evidences before the ld. CIT(A) on an application under rule 46A which provides that ld. CIT(A) may admit those additional evidences after confronting the same before the Assessing Officer to ascertain the veracity of those evidences. Instead of doing this exercise, ld. CIT(A) has summarily rejected the additional evidences placed before him under rule 46A on baseless and frivolous reasons which goes against the principles of natural justice. We find that complete names, addresses, amounts were provided by the assessee including entire confirmation from these creditors filed before us. CIT(A) has also not given a clear cut finding on the issue and has simply accepted the version of the Assessing Officer and the Assessing Officer, without taking procedure initiated by him under section 133(6) to a logical conclusion, has held the assessee liable for non-production of creditors, which is not warranted within the purview of tax legislation - Decided in favour of assessee
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