TMI Blog2016 (7) TMI 842X X X X Extracts X X X X X X X X Extracts X X X X ..... ll other evidences for substantiating its claim before the AO as well as before the Ld. CIT(A) like copy of confirmation alongwith the copies of PAN card of the creditors duly confirmed by them alongwith the other documentary evidence for substantiating the claim of the assessee which the Ld. CIT(A) has mentioned in the impugned order. Therefore, CIT(A) has passed a well reasoned order on the basis of the documentary evidences filed by the assessee and rightly deleted the additions in dispute, which does not require interference - Decided against revenue - ITA No. 3858/Del/2014 - - - Dated:- 15-6-2016 - SHRI H.S. SIDHU, JUDICIAL MEMBER For The Department : Sh. KK Jaiswal, Sr. DR For The Assessee : Sh. Deepak Ostwal, FCA OR ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) who vide impugned order dated 30.4.2014 has allowed the appeal of the assessee. 4. Against the order of the ld. CIT(A), Revenue is in appeal before the Tribunal. 5. During the hearing, Ld. DR relied upon the order passed by the AO and reiterated the contentions raised in the grounds of appeal by the Department and stated that Assessing Officer had issued notices u/s 133(6) of the Act to the sundry creditors for establishing their identity and creditworthiness which were received back unserved. He further stated that AO also directed the assessee to produce all the creditors, but the assessee failed to produce them before the AO to verify the genuineness of the transactions in dispute. In the absence of the sufficient evidence and no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... I have heard both the parties and perused the records, especially the order of the Ld. First Appellate Authority. After perusing the impugned order of the Ld. CIT(A), I find that Ld. CIT(A) has elaborately discussed the issues in dispute vide his impugned order dated 30.4.2014 vide para no. 5 to 6 at pages 4 to 6 and held as under:- 5. I have carefully considered the submission made by the AR of the appellant and assessment order. I have also verified the assessment records of the appellant. It is noted that the Assessing Officer had issued notices u/s 133(6) through speed post to the following creditors on 14.02.2013 requesting the creditors to furnish the copy of account of the appellant for the relevant assessment year, the PAN No a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ditors namely Star Power Coating on 09.03.23013, Hari Enterprises on 20.3.2013 and Jai Mada Di Udyog on 20.3.2013 wherein the creditors provided the copy of accounts alongwith the their proof of identity and PAN Nos. The appellant also furnished copies of his bank statements to prove that the payments were made to these creditors during the relevant assessment year through cheques against the purchases made from them. However, it seems that the Assessing Officer did not proceed further and without verifying the genuineness of these creditors and their accounts with the appellant, hastily completed the assessment uls 143(3) vide his order dated 11.3.2013 which was despatched for service through speed post on 25.03.2013. This is in clear viol ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urse of assessment. In the case of Star Power Coating, the confirmation of account was received by the Assessing Officer twice i.e. on 04.03.2013 and on 09.03.2013. Again the purchases and payments were made against the purchases has not been disputed by the Assessing Officer. On these facts and circumstances of the case, I am of the considered opinion that the Assessing Officer has erred in treating the outstanding credit amount against the above mentioned three creditors as unexplained cash credit u/s. 68 of the Income Tax Act, and therefore, addition made on this account of ₹ 34,26,278/- is directed to be deleted. It is further noted that during the relevant assessment year the appellant has paid Insurance Premium to LlC on t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ddition of ₹ 75,000/- made by the Assessing Officer and accordingly, the Assessing Officer is directed to delete the addition of ₹ 75,000/-. 6. In the result, the appeal is allowed. 7.1 After perusing the finding of the Ld. CIT(A), I am of the view that Ld. CIT(A) has passed a well reasoned and speaking order, because AO issued notice u/s 133(6) to M/s Star Power Coating and M/s Hari Enterprises which were returned back by the postal authorities due to inadequate address and the notice u/s 133(6) of the Income Tax Act, issued to M/s Jai Mata Di Udyog was returned by the postal authorities with the remarks to consult Bahadurgarh meaning thereby the creditors are in existence. I also find that assessee has furnished ..... X X X X Extracts X X X X X X X X Extracts X X X X
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