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2024 (2) TMI 700 - ITAT KOLKATAUnverified sundry creditors - only reason of the rejection of sundry creditors was that the sundry creditors have not made any response in relation to the issuance of notice or process of verification of the Revenue - HELD THAT:- The assessee is registered under the West Bengal VAT Act, 2003/CST Act, 1956. There is no such enquiry done by the Revenue or any negative comment was received from the indirect tax authority related to purchase of the goods. There is no such significant effort that inquiry was done from the end of the VAT Authority also. There is no discrepancy in the purchase of goods or payment. Only the opening balance was added to the total income of the assessee. In our considered view that the assessee is protected from the coherent evidence like that all payments, purchase bill, VAT Registration, Return of VAT Act, 2003, confirmation of parties and reply of parties in persuasion of notice u/s. 133(6) of the Act. DR has agitated the point of non-verification of parties. But verification of parties not only concentrated by non- compliance of notice u/s. 133(6) or inspection conducted by the Inspector of revenue. The purchase and sales of assessee during impugned assessment year are accepted by the ld. AO. DR is not able to bring any contrary order of earlier years where the sundry creditors or purchase are rejected by the ld. AO. Only for the cross verification u/s 133(6) is in dispute, cannot the good reason for rejection of sundry creditors - thus entire addition is unjustified considering the submission of the assessee, which were filed before both the lower authorities. Decided in favour of assessee.
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