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2016 (8) TMI 1011 - SUPREME COURT

2016 (8) TMI 1011 - SUPREME COURT - TMI - Addition relating to trade creditors - additions u/s 68 - Held that:- Both the Assessing Officer and the C.I.T. had recorded findings of fact adverse to the Assessee which has been upheld by the learned single judge of the High Court. The Division Bench of the High Court in the Writ Appeal thought it appropriate to reverse the said findings on the ground that the 37 persons who had advanced the loan to the Assessee ought to have been given notice. The ju .....

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handled really by the Assessee and further in view of the categorical finding that the loan amounts were not reflected in the returns of the 37 persons in question, we do not see how the High Court could have taken the above view and remanded the matter to the Assessing Officer. It has been pointed out before us that pursuant to the impugned order passed by the Division Bench of the High Court fresh assessment proceedings have been finalized by the Assessing Officer. The said exercise has been .....

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passed pursuant thereto. - Civil Appeal No. 8219 of 2016, Special Leave To Appeal (C) No. (S). 36554/2012 - Dated:- 22-8-2016 - Ranjan Gogoi And Prafulla C. Pant, JJ. For the Petitioner : Mr. A.N.S. Nadkarni, ASG Ms. Shirin Khajuria, Adv. Ms. Shweta Garg, Adv. Mrs. Anil Katiyar, Adv. For the Respondent : Mr. Pritesh Kapur, Adv. Mr. Senthil Jagadeesan, Adv. Mr. Govind Manoharan, Adv. Ms. Shruti Iyer, Adv. ORDER 1. Leave granted. 2. The challenge in the present appeal is to the judgment and order .....

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claimed by the Assessee as being legally liable for deduction. The learned Commissioner of Income Tax (C.I.T.) in coming to the impugned finding had recorded as follows: Regarding the addition relating to trade creditors, the records establish that the assessee has shown sudden in trade creditors without any significant transactions of purchases during the year. Obviously, there cannot be trade creditors without matching transactions. The investigation carried out by the A.O. exposed the modus .....

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op loans accounts in the bank were also operated by the same person from the assessee. When the investigation arm was extended to Chennai and some details were collected about these so-called estate owners, no such accounts appear in their records. Besides, the nexus of their sacrificial loans to bail out the assessee could not be bridged either. In effect, there was clear instance of creation of accounts by way of name leading, a fraudulent practice. All these aspects were fully exposed in the .....

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learned single judge in the writ petition by observing as follows: 6. The material on record discloses that the crop loan was raised in the names of planters within the family circle hailing from Chennai purportedly owning some estates. The loans raised by them from the Bank where the assessee also operated its bank accounts were claimed to be given to the assessee. These crop loans applications were prepared and signed by none other than the top man in the management of the assessee. The crop .....

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ut that the said amount has come from transfer of amounts of the very same Bank account. It is in that context, a detailed investigation was made and it was found out that it is a clear instance of creation of accounts by way of name lending, a fraudulent practice. In those circumstances, the revisional authority was justified in rejecting the case of the petitioner and upholding the assessment order. In that view of the mater, I do not find any merit in this petition. Accordingly, it is dismiss .....

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