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TMI Blog2021 (11) TMI 256X X X X Extracts X X X X X X X X Extracts X X X X ..... 25% of certain outstanding creditors. 2. In response to the notice of hearing, no one has come present on behalf of the assessee. With the assistance of the learned Departmental Representative, we have gone through the record carefully and proceed to dispose of the appeal ex parte qua the assessee. 3. The brief facts of the case are that the assessee is an individual. He has filed his return of income on 29.09.2015 declaring total income of Rs. 51,92,900/-. The assessee, at the relevant time, was engaged in the business of civil construction as a contractor and sub-contractor in the name and style of M/s. Engineering Builders. The case of the assessee was selected for scrutiny assessment and notice under Section 143(2) of the Act was iss ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee. The learned CIT(A) has specifically examined these three cases individually and recorded the findings. For the sake of reference, we take note of the finding recorded by the learned CIT(A) for one of the creditors namely Globe Trade, as under:- "4.3. I discuss one by one of about all three creditors: Globe Trade:- Ledger A/c - Engineering builders- appearing in the books of Globe Trade shows as under: 01.04.2014 Opening debit balance : Rs. 13,84,952/- 09.04.2014 Closing debit balance : Rs. 10,84,952/- TDS : Rs. 9,080/- Conclusion: Ledger details show there is no transaction between the appellant and creditor during the year. However, the appellant has deducted TDS of Rs. 9,080/-. The moot question arises here is wh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lance of Rs. 10,84,952/- is remained to be paid, then how the 25% can be termed as non-genuine. The learned Assessing Officer has placed reliance on the decision of the ITAT in the case of Vijay Proteins Ltd. Vs. ACIT (supra) which is altogether a different case. In that case, the assessee company was engaged in the business of producing edible oils, oil cakes etc... It has made certain purchases which were alleged to be the bogus. The Tribunal, as a matter of fact, found that there is no dispute with regard to the sales achieved by the assessee; and, for achieving those sales, purchases must have done. There can be of different source namely the assessee has shown purchase from "A" but material could have been supplied by "B". In that exer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r? It can be an outstanding sundry creditor from the earlier years out of which partly paid in this year. We failed to appreciate the logic given by the learned First Appellate Authority. One of the observations made by learned CIT(A) is that a credit entry of Rs. 3,00,000/- was shown in the bank statement of M/s. Globe Trade followed by transferring the same amount back to the assessee. But this aspect has not been further elaborated by reproducing the bank statement and why the learned CIT(A) has not issued a notice for enhancement of disallowance. Because, in that case, the whole amount of Rs. 13,84,952/- should be considered as bogus and not 25% of that. To our mind, both the authorities have not appreciated the facts in right perspecti ..... X X X X Extracts X X X X X X X X Extracts X X X X
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