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2021 (3) TMI 1387 - ITAT SURATBogus Purchases - CIT-A deleted the addition - HELD THAT:- Hon`ble High Court of Gujarat in the case of Nangalia Fabrics (P) Ltd, [2013 (8) TMI 80 - GUJARAT HIGH COURT] held that where purchases were supported by bills, entries were made in books of account and payment was made by cheques, said purchases could not be held as bogus purchases. Purchases are supported by bills, there is entries in the books of account, payment was made by account payee cheques and assessee maintains quantitative details, and we also noted that Assessing officer did not find any inflation in purchase price. Besides, Assessing officer has failed to prove that payment made by assessee for these purchases came back to assessee in cash. That being so, we decline to interfere with the order of Id. CIT(A) in deleting the aforesaid additions. His order on this addition is, therefore, upheld and the grounds of appeal of the Revenue is dismissed. Addition on account of unexplained, unsecured loan and disallowance of interest thereon - HELD THAT:- Once the AO gets hold of the PAN of the lenders, it was his duty to ascertain from the AO of those lenders, whether in their respective return they had shown existence of such amount of money and had further shown that those amount of money had been lent to the assessee. In the assessee`s case department had accepted repayment of loan in subsequent year. The assessee provided the assessing officer, the new addresses of these parties during the assessment proceedings along with the confirmations, ledger account, capital account, bank statement, Income Tax Return and computation of income. All these persons are assessed to tax and the balance sheet filed by them reflect the unsecured loans given to the assessee. The transactions have been made through account payee cheques and the bank accounts have not been credited with any cash deposits. The loan amount has also been repaid during the subsequent assessment year. In view of the above facts, we note that assessee has discharged the onus of proof and therefore the addition made by the assessing officer and the consequent disallowance of the interest were rightly deleted by ld CIT(A). That being so, we decline to interfere in the order of the Ld. CIT(A), his order on this issue is hereby accepted and grounds of appeal raised by the Revenue is dismissed.
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