TMI Blog2015 (2) TMI 529X X X X Extracts X X X X X X X X Extracts X X X X ..... y the assessee/respondent. One had died, one had brain hemorrhage, one had paralysis, four couldn't come due to harvest season and four were already examined in the set-aside proceedings. All the farmers who came-up had accepted that they are having long term dealing with the assessee/respondent and that they used to collect their sale consideration after 1-2 months, which is general practice in the line of farming and selling in the mandis. The appellant also furnished the details of land holdings of all the farmers, which shows that they belonged to farming community. The case laws relied upon by the assessee are squarely applicable on the case of the assessee, therefore, we uphold the order of the learned CIT(A). - Decided in favour ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on various grounds. The details of opportunity being allowed by the Assessing Officer have been mentioned on page Nos. 2 and 3 of assessment order. On 17/09/2010, the assessee produced four farmers for verification. The statement of four farmers namely Shri Babu Lal Meena, Shri Ramji Lal Meena, Shri Ramswaroop Meena and Shri Dharmsingh Meena were recorded U/s 131 of the Income Tax Act, 1961 (in short the Act). The eminent portion of the statement has been reproduced by the Assessing Officer on page Nos. 3 to 9 of the assessment order. It had been confirmed by the farmers before the assessee that they have given statement before the Inspector. The learned Assessing Officer concluded that 24 persons cannot produce non-judicial stamp paper on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ll of them agreed that they have sold crops to the assessee on credit. iii) Due to lapse of time, it was quite natural that these persons could not give exact details. iv) The statement recorded by Inspector cannot be relied on as Inspector has no power to record statement under Income Tax Act. Secondly, the statements were in the hand writing of one person and signatures of farmer creditors were obtained on these statements. v) All of them agreed that the signature on the affidavit were theirs and there is no evidence on record to suggest otherwise. In view of the above discussion, I am of the view that no adverse inference can be drawn from the statements recorded by the A.O.. The A.O. is therefore directed to delete addition ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nity of cross examination to the assessee. He instructed the learned Assessing Officer to choose any 20% of the 115 creditors on random sampling basis as is deemed convenient by the learned Assessing Officer. The learned Assessing Officer did not issue summons but instructed the assessee respondent to bring the farmers/creditors as selected by him. On the basis of instructions issued by the learned CIT (A), 20% of 115 creditors /farmers came to 23. He also furnished details of land holding. Thus, he argued that the learned Assessing Officer has simply stated that the agriculturists appeared to be tutored. He submitted that at one side, learned Assessing Officer refuses to issue summons u/s. 131 directly to the farmers/creditors to be verifi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (i) Anis Ahmed and sons Vs. CIT(A) (2008) 297 ITR 441 (SC). (ii) CIT Vs. Kamdhenu Vyapar Co. Ltd. (2003) 263 ITR 692. (iii) Madan Lal Vs. ITO (2006) 99 TTJ 538 (Jodh). Therefore, he prayed to confirm the order of the learned CIT(A). 6. We have heard the rival contentions of both the parties and perused the material on record. The Ward Inspector in original proceeding had recorded the statement of 14 farmers. In set aside proceedings, the assessee was able to bring four farmers out of 14 creditors/farmers for recording the statement. As the substantial time has elapsed and there is no power with the assessee to force them to appear before the Assessing Officer for verification but the statement of 4 farmers showed that they ha ..... X X X X Extracts X X X X X X X X Extracts X X X X
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