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TMI Blog2015 (2) TMI 529X X X X Extracts X X X X X X X X Extracts X X X X ..... nsactions. 2. In this case, the ITAT, Jaipur 'B' Bench in ITA No. 590/JP/2009 order dated 20/1/2008 had set aside the issue by giving the following directions: "There is no dispute to the fact the farmers/creditors examined are genuine persons and goods have been sold by them to the assessee. As regards the quantum and the affidavits the assessee should be given an opportunity of being heard and the cross examination of the said farmers/creditors. In the circumstances and facts of the case and in the interest of justice the matter is restored to the file of the A.O. to examine the issue denovo but by providing opportunity of being heard to the assessee. The A.O. is directed to act accordingly." The learned Assessing Officer as per directi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the appellant. He also relied on the findings given by the learned CIT(A), Kota on difference in the signatures on various papers of the farmers. He also noticed various discrepancies in the submissions made by the assessee and finally added back the outstanding creditors at Rs. 34,74,538/- in the income of the assessee. 3. Being aggrieved by the order of the Assessing Officer, the assessee carried the matter before the learned CIT(A), who had allowed the appeal by observing as under:- "I have gone through the A.O's report, assessee's submission, case records and the following observations/conclusions are worth mentioning:- i) Non-production of 8 persons cannot be taken against assessee as despite my directions, no summons U/s 131 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e statements were earlier recorded by the Inspector. With much difficulty the assessee was able to bring 4 out of 14 creditors/farmers for recording of statements. In the statements recorded all 4 accepted that they had sold their crop to the assessee and that they had left the sale consideration with the assessee and have collected the consideration after a period of 1-2 months. However, the learned Assessing Officer disbelieved the version of the farmers/creditors and again repeated the additions. Not a single word has been spelt in the assessment order in the set-aside proceedings with regards to genuineness or creditworthiness of the farmers/creditors. In the first appeal proceedings before the learned CIT (A), the learned CIT (A) gave ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... they are having long term dealing with the assessee respondent and that they used to collect their sale consideration after 1-2 months. Not even a single farmer has denied that no amount was due to be receivable from assessee in the financial year 2004-2005. The assessee has already submitted the details of the farmers / creditors thus their identity stood proved. Hon'ble ITAT has itself held that the farmers / creditors are genuine persons and have sold goods to the assessee. Thus their genuineness also stands proved. Since they have been regularly selling agricultural produce to the assessee respondent for the past more than 5-7 years and they also have other sources of income their credit-worthiness also stands proved. Thus the iden ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... before him. In set aside proceedings, out of 23 farmers selected for verification. 11 farmers were examined by the learned Assessing Officer and were also cross examined by 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 communit ..... X X X X Extracts X X X X X X X X Extracts X X X X
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