TMI Blog2000 (7) TMI 205X X X X Extracts X X X X X X X X Extracts X X X X ..... er s. 131 and those parties stated that cash was not given by them to the assessee as recorded in assessee's books of accounts. The AO has made addition of cash credits of Rs. 81,185 with the following observation: "1. Hans Quarry Metal Works, Chikhli The assessee's books of accounts shown sale of Rs. 76,785 and payment for the same whereas accounts in the books of accounts of the customer, no such payment has been made to the assessee. A statement under s. 131 have been recorded in the case of customer. It is shown that the assessee has credited in its books of accounts cash credit and not the payment received on account of sale of goods. In the circumstances the cash introduced in the books of accounts has been treated as cash cre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nts the assessee has shown bills amounting to Rs. 40,380 for sale of goods and the entire amount has been taken as cash received whereas in the books of accounts of customer. The assessee has shown purchase of goods amounting to Rs. 40,180 and payment to the assessee Rs. 21,165. Since the assessee has credited in its books of accounts excess cash amounting to Rs. 19,215. The same has been created as cash credit in conformity with the cross-examination of the customer; one of the partners statement under s. 131 has been recorded. 5. Amardeep Metal Works In the books of accounts of the assessee, the total bills raised for Rs. 63,175 the entire payment has been received whereas in the books of accounts of the customer. The total purchase ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... balance of Rs. 3,990 and bills raised comes to Rs. 1,22,545 and entire payment has been shown as received whereas in the books of accounts of the customer only Rs. 64,740 purchase of goods have been disclosed and against this Rs. 15,000 payment has been made as such Rs. 14,740 cash introduced by the assessee. In the books of accounts of the assessee has been treated as cash credit. 9. Gayatri Quarry Works In the books of accounts of the assessee the total sales have been shown Rs. 79,665 and the same has been shown as payment received from the customer. Whereas in the books of accounts of the customer the total transaction for purchase of goods have been shown as Rs. 1,20,835 with the opening balance of Rs. 88,135. The opening balanc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... done. Accordingly, the learned CIT(A) as per discussion in para 3.4 of this order, confirmed the addition. 4. The assessee has come up in appeal. The principal arguments on Shri J.P. Shah, the learned counsel for the assessee, were as under: (i) That credits in accounts of the purchasers was not cash credits. It was realisation of sale consideration of goods sold. This realisation from the sundry debtors could not be treated as cash credits. Cash credits always appear as a liability in the balance-sheet of the assessee. Realisation from the sundry debtors would reduce sundry debts appearing on the asset side of the balance-sheet. In support of above proposition, the learned counsel relied upon decision of Tribunal 'A' Bench, Delhi in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... O added Rs. 32,825 whereas addition worked out to Rs. 14,000 only. Likewise, in case of Gayatri Guarry Works, the AO added Rs. 90,835 whereas the correct addition as per AO's own showing was only Rs. 49,665. Such mistakes were committed in other cases also. 4.1. Shri Shah, however, submitted that he did not want the case to be remanded for cross-examination of assessee's purchasers as such cross-examination would not be in assessee's interest. He reiterated that addition should be deleted as it is based on no evidence. 5. The learned Departmental Representative opposed above submissions. He argued that assessee was asked to file confirmation from the creditors in support of entries and also to produce them. The assessee failed to prod ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the argument that cash credits appear on the liability side whereas sundry debtors appear on the asset side of the balance sheet and, therefore, s. 68 is not applicable to trade credits. The above is true of genuine cash credits and not of credit entries which are held to be non-genuine. The strong reliance of the assessee on the decision of Hon'ble Supreme Court in the case of CIT vs. Smt. P.K. Noorjahan is also not of any avail. The decision was given on the peculiar facts before the Court and is not applicable to the facts and circumstances of the case before me. Therefore, I do not find any substance in the submissions advanced by Shri J.P. Shah except the one relating to the working of the addition. 6.2. That on treating credit en ..... X X X X Extracts X X X X X X X X Extracts X X X X
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