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M/s Otan Mal Versus Assistant Commissioner of Income Tax

Cash credit entry - addition on liability towards the suppliers - Held that:- The Assessing Officer has accepted purchases of ₹ 1,09,67,551/- out of which ₹ 1,00,49,705/- stood paid during the relevant assessment year. Therefore, the remaining amount is a liability which the assessee has to discharge, which he discharged in the next financial year. How the said amount can be treated to be a cash credit entry after the purchase amount accepted by the Assessing Officer, could not be ex .....

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onsequently said finding is set aside and the question of law is answered in negative and in favour of the assessee and against the Revenue. - Misc. Appeal No. 25 of 2008 - Dated:- 16-3-2016 - Hemant Gupta And Ramesh Kumar Datta, JJ. For the Petitioner : Dr. R. Usha, Adv. and Mrs. Sabita Kumari, Adv. For the Respondent : Mr. Rishi Raj Sinha, Adv. Mrs. Archana Prasad, Adv. JUDGMENT ( Per: Honourable Mr. Justice Hemant Gupta ) Heard learned counsel for the appellant and the respondent. 2. The asse .....

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ontract basis declaring income of ₹ 7,77,990/-. The Assessing Officer after going through the balance-sheet found that a sum of ₹ 9,17,846/- was outstanding in the liability side of 15 sundry creditors. These sundry creditors were the suppliers of stone chips and red sand. The assessee claimed that in the balance-sheet an amount of ₹ 9,17,846/- has been shown to be outstanding in the liability side of 15 sundry creditors. Such creditors were said to be the petty suppliers havin .....

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e case the Tribunal was justified in not allowing a sum of ₹ 9,17,846/- outstanding credit assessed in the income at the hands of the Appellant". 5. Learned counsel for the appellant vehemently argued that the Assessing Officer has accepted the purchases of ₹ 1,09,67,551/- out of which an amount of ₹ 1,00,49,705/- was paid during the relevant Assessment Year. The sum of ₹ 9,17,846/- was the balance due amount. The said amount was shown as a liability to be paid to th .....

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-tax Vs. Pancham Dass Jain (2007) 196 Taxation 569 (All.) to contend that having accepted the purchases and sales, the provisions of Section 68 of the Act could not be attracted. The Court said to the following effect: "He submitted that as the respondent-assessee was unable to produce the alleged creditors the provisions of section 68 of the Act was squarely attracted in the present case and the assessing authority has rightly added the two amounts at the hands of the respondent-assessee. .....

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