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2019 (4) TMI 760 - AT - Income TaxAdditions u/s 68 - unexplained credit - HELD THAT:- There was an outstanding credit balance in the name of M/s Noble Cashew Industries as on 31.03.2011 in the books of the assessee. On verification of the books of accounts of the creditor, it is found that there was no balance outstanding against the assessee, which indicates that the credit balance shown in the books of the assessee is bogus. During the appeal hearing, the AR could not place any evidence to prove the genuineness of the outstanding either before the CIT(A) or before the Tribunal. Therefore we do not find any reason to interfere with the order of the CIT(A) and the same is upheld. The appeal of the assessee on this ground is dismissed. Bogus expenditure - HELD THAT:- The assessee failed to provide any evidence or ledger extracts to prove the identity of the creditor and the genuineness of the outstanding. Though non-furnishing of account copies does not lead to addition, it is incumbent upon the assessee to prove the genuineness of the outstanding creditors. Since the assessee failed to furnish any primary evidence with regard to the identity, genuineness and the existence of the said creditor, we uphold the order of the CIT(A). Accordingly, the appeals of the revenue as well as of the assessee on this issue are dismissed. Addition of un-reconciled balances in the accounts of four sundry creditors - HELD THAT:- There were differences in outstanding balance of the creditors accounts vis-à-vis the assessee. The assessee has furnished the reconciliation and the CIT(A) has verified the accounts and satisfied with regard to the correctness of the balances. Since the CIT(A) has satisfied with regard to the correctness of the out standings and the differences were duly reconciled, we do not see any reason to interfere with the order of the CIT(A) and the same is upheld. Accordingly, Ground of the Revenue are dismissed. Addition on account of credit balance in the name of Rajkumar Impex Pvt. Ltd - HELD THAT:- Having accepted the purchases and the payments were made through cheques, there is no reason to suspect the purchases. The AO without reconciling the account, made the addition. Further in case of trade creditors, if there is a bogus purchase, the AO is required to make addition u/s 37(1), but not u/s 68 of the Act. Similarly, if the AO suspects that the payments are made outside the books of accounts, the AO is free to make the addition, but no such evidence was brought on record by the AO. In the instant case, Rajkumar Impex Pvt. Ltd. is a trade creditor and the AO has accepted all the purchases and the payments which were made through cheques and no evidence was brought on record that the assessee has made the payment outside the books of accounts. Hence, there is no reason to make the addition, accordingly, the appeal of the CIT(A) is upheld and the appeal of the revenue is dismissed.
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