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2023 (6) TMI 930 - ITAT MUMBAIAddition of sundry creditors - persons to whom sum is payable on account of purchase of land - HELD THAT:- It is not the case of the AO that those parties have not sold the land to the assessee or assessee has already paid the sum to them. Amount outstanding against their names is treated as Bogus. No doubt, AO has issued enquiry letter u/s 133(6) to them but they have not replied. However, that cannot result into an addition in the hands of the assessee in view of overwhelming evidences of purchase of property. Thus, when parties are identified, transaction of purchase of land is accepted, reason for outstanding amount is explained, consideration of land is not in doubt, no evidences that parties have been paid from undisclosed sources, addition of outstanding amount treating it as bogus sundry creditors cannot be made. No reason to sustain the order of the Lower Authorities with respect to the outstanding. Accordingly, the addition to them to extent that purchase of land is deleted. Addition for creditors for various services and purchases - HELD THAT:- It is not always necessary that creditors should always remain present in the assessment of debtors. Of course, if the transaction are unusual, alarming and there are evidences that those creditors are bogus, situation may be different. Here in this case, no such abnormal circumstance are shown. Accordingly, we direct the Ld. AO to delete the addition. With respect to the balance sum AO has made the addition of sums are to be paid to the two carpenters. Naturally the nature of payment and the quantum is so small that non-receipt of confirmation from them u/s 133 (6) of the Act cannot result in addition. It is further shown that these expenses are not debited to the Profit and Loss account but are added to the fixed assets on which depreciation is claimed and allowed. This fact is not controverted by Revenue, therefore, the addition also deserves to be deleted. Decided in favour of assessee.
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