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TMI Blog2012 (9) TMI 182X X X X Extracts X X X X X X X X Extracts X X X X ..... ,000/- respectively in the assessment year under consideration to the said party. In the above circumstances addition made for want of confirmation was not warranted when the purchases were duly supported by bills and substantial subsequent payment was made through banking channel. On addition in regard to third creditor the Revenue was not justified in making the addition being unpaid purchase price as at the year end only for want of confirmation without bringing on record any material to show that the entries made in the regular books of account were not correct. Thus, the entire addition is unsustainable - appeal in favour of assessee. Levy of interest u/s 234B - Held that:- As the addition made by AO have been directed to be deleted assessee is to granted consequential relief for interest under section 234B - in favour of assessee. - I.T.A.Nos.788 & 789/12 - - - Dated:- 22-6-2012 - SHRI N.S. SAINI, AND SHRI CHALLA NAGENDRA PRASAD, JJ. Appellant by : Shri T.S.Lakshmivenkataraman, CA Respondent by : Shri Vikramaditya, Jt. CIT O R D E R PER N.S. SAINI, ACCOUNTANT MEMBER These are the appeals filed by the assesses against separate orders of the CIT(A)-I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gument sake one considers that confirmations are not filed because of certain disputes with the creditor there exists scope of addition of credits in the hands of the assessee on account of remission of liability. 8. The A.R of the assessee submitted that in the case of Shri R.Thangamani, the addition of Rs. 10,23,865/- represents opening balance as on 1.4.2006. The entire addition does not pertain to the year under appeal and hence, the same should be deleted. As regards M/s Asian Needle Agency, the A.R submitted that total purchases made during the year were Rs. 4,45,460/- and payments made during the year was Rs. 2,30,000/- leaving a closing balance as on 31.3.2007 of Rs. 2,15,460/-. This balance amount was paid in the subsequent years ending 31.3.2008 and 31.3.2009, account copies of which are placed in the paper book. Regarding M/s J.M. Traders, the A.R submitted that total purchases during the year were Rs. 4,10,413/-. No payment was made during the year. However, the payment was cleared in the year ended 31.3.2008, account copies of which are placed in the paper book. 9. Similarly, in the case of A.Rajendran, the A.R of the assessee submitted that regarding M/s Century ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... prove identify of creditors and thereafter the burden shifts to Revenue to prove cash credits were not genuine. Identity of applicants for shares and their PAN Nos. furnished inability to find a few applicants not sufficient to invoke section 68. He submitted that in all the three creditors case, complete postal address which are subject matter of addition was furnished by the assessee and therefore, the case of the assessee was covered by the said decision. 11. On the other hand, the ld. DR vehemently argued and supported the orders of the lower authorities and specially relied on page 3 para 5.2 of the order of the CIT(A) wherein the CIT(A) has held that the assessee has not given any valid reason for non-production of confirmation from the creditors which is his primary duty. 12. We have heard the rival submissions and perused the orders of the lower authorities and materials available on record. The Assessing Officer observed that the assessee, Shri R.Thangamani, could not file confirmations of the following three sundry creditors: i) M/s Century Corporation Rs. 10,23,865/- ii) M/s Asian Needle Agency Rs. 2,15,450/- iii ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... earing in the books of the assessees for the assessment year under consideration in the case of the Shri A.Rajendran is placed at page 4 of the paper book and in the case of the assessee, Shri A.Rajendran is also placed at page 4 of the paper book and for the assessment year 2008-09 is placed at page 5 of the paper book in the case of the assessee, Shri R.Thangamani and is also placed at page 5 of the paper book in the case of the assessee Shri A.Rajendran. A perusal of the ledger account for the assessment year 2007-08 shows that the assessee, Shri R.Thangamani purchased needles of Rs. 4,45,460/- and the assessee, Shri A Rajendran purchased needles of Rs. 4,61,570/- and the assessee, Shri R.Thangamani paid Rs. 2,30,000/- and the assessee, Shri A.Rajendran paid Rs. 2,00,000/- by cheque during the year under consideration and Rs. 2,15,460/- remained payable in the case of the assessee, Shri R.Thangamani and Rs. 2,61,570/- remained payable in the case of the assessee, Shri A.Rajendran as on 31.3.2007. We find that the genuineness of the purchase was not doubted by the Revenue and the same was duly allowed as deduction to the assessee. It is further observed from the ledger account of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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