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TMI Blog2012 (12) TMI 626X X X X Extracts X X X X X X X X Extracts X X X X ..... ed trade creditors. 3. The brief facts of the case are that the assessee filed return of income for assessment year 2007-08 on 31.3.2008 admitting an income of Rs. 3,98,290/-. The assessment was made u/s 143(3) on 31.12.2009 determining the income of Rs. 79,24,328/-. 4. The assessee filed appeal against the additions made by the Assessing Officer and the CIT(A) deleted the additions. 5. On further appeal by the Revenue to the Tribunal, the Tribunal confirmed the order of the CIT(A) and dismissed the appeal of the Revenue. 6. Meanwhile, the CIT-II, Coimbatore, vide order dated 26.3.2010 set aside the assessment made u/s 143(3) with a direction to redo the assessment and in the assessment framed u/s 143(3) r.w.s 263 on 30.12.2010, the Ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ders of the lower authorities and materials available on record. In the instant case, the Assessing Officer observed that the trade creditor namely, M/s Jai Hind Leathers, in whose name assessee had shown an amount of Rs. 13,84,500/- was not genuine. The Assessing Officer observed that the assessee filed before him computer generated ledger copy of M/s Jai Hind Leathers, copy of bank statement of the assessee in which payments made to M/s Jai Hind Leathers are recorded and copy of sales tax assessment order of M/s Jai Hind Leathers passed by Assistant Commissioner (CT) FAC, Peria Agraharam Circle, Erode on 11.1.2010 passed for assessment year 2006-07. The Assessing Officer also observed that the Inspector deputed by him has caused discrete ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a nullity in as much as, the order has been passed "as directed by the Commissioner of Income tax-II, Coimbatore" at Page 4 of the assessment order, relying on the decision of the Apex Court in 314 ITR 81. The Assessing Officer has not appreciated the facts filed in a detailed reply filed before him on 6.12.2010 in respect of the same creditor namely M/s Jai Hind Leathers. In the course of appellate proceedings before the learned Commissioner of Income tax (Appeals), Coimbatore in the case of Shri A.Charles in Appeal No.274/09-10, the Commissioner of Income tax (Appeals) allowed the claim of the said appellant and directed the deletion of said addition made in that case. The trading results of the appellant are accepted and no evidences are ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... therefore, observed that this could not be treated as enough proof about non-existent of the creditor firm and the credit shown of Rs. 13,84,500/- cannot be rejected and added to the income returned. The transactions entered into by the assessee relate to the period 2006-07. During the assessment year 2007-08 the assessee made purchases of Rs. 67,80,384/- and made payment of Rs. 71,83,294/- leaving a closing balance of Rs. 9,81,590/- and that even during the assessment year 2008-09 the assessee made purchases from M/s Jai Hind Leathers of Rs. 61,95,540/- and the account was closed in assessment year 2008-09. The CIT(A) has noted that the Assessing Officer has not added the purchases of Rs. 13,84,500/- made during the assessment year 2006-0 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , has mentioned that copies of sales tax returns revealed that Shri Pachamuthu has done business transactions/turnover exceeding Rs. 2 crores during the financial year 2006-07. However, no enquiries regarding his sources, bank accounts were made. No attempt was made by the Assessing Officer to find out his business address in the light of adverse report of ITI. The assessee had purchased goods worth Rs. 1,00,48,000/- from M/s Sabari Leather Exports. The Assessing Officer has not made any comments regarding the purchases made by the assessee. The trade creditor is on account of purchase transactions made during the year. The assessee made payments of Rs. 84,50,000/- during the year but surprisingly, the Assessing Officer has not made any com ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... overted by the Revenue by bringing any materials on record. The Assessing Officer has not found these transactions to be non-genuine with the help of evidence. The assessee produced the copies of bills, bank statement and the sales tax order. Therefore, respectfully following the order of the Tribunal in assessee's own case in I.T.A.No.843/Mds/2011, we confirm the order of the CIT(A) in deleting the addition of Rs. 13,84,500/- made by the Assessing Officer on account of bogus trade credit. Thus, the grounds of appeal of the Revenue are dismissed. 15. The cross objection filed by the assessee is simply in support of the order of the ld. CIT(A) without any material grounds. In view of our order in Revenue's appeal, we dismiss the cross obje ..... X X X X Extracts X X X X X X X X Extracts X X X X
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