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2020 (12) TMI 498 - AT - Income TaxAddition u/s 68 - sundry creditors whose balance were outstanding as of the end of the previous year - HELD THAT:- The quantity and value of purchases formed part of the audited accounts, quantitative details, gross profit margin and also various accounting ratios of the appellant. In the report furnished by the tax auditor in Form 3CA, no adverse comments or qualifications have been given in this regard. Further no specific infirmity or defect has been pointed out by the AO in respect of the books of accounts of the appellant. In the confirmation letter placed clarified by Shri Saugata Bhowal, proprietor of M/s. Bajrang Traders that his proprietorship concern had been closed down due to financial problems so it can be presumed that it was the reason why the AO's notice u/s. 133(6) could not be served upon it, so no adverse view was warranted against this sundry creditor. Other two sundry creditors M/s. Lhaki Steels and Rolling Pvt. Ltd. and M/s. Bhutan Rolling Mills were non-residents and had been duly served the notice issued by AO u/s. 133(6) of the Act, and they both have already furnished their confirmation to have received the balance amount from assessee by RTGS/NEFT. - no addition was warranted u/s. 68 of the Act and therefore direct the deletion of addition - Decided in favour of assessee.
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