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TMI Blog2014 (1) TMI 836X X X X Extracts X X X X X X X X Extracts X X X X ..... tion made by the AO in respect of the sundry creditors Shri P. C. Giri and Shri Sudhanshu Sekhar is unsustainable as the assessee has discharged his onus for proving the transaction of the sundry creditor and no evidence whatsoever has been found to dislodge the evidence as produced by the assessee and the confirmation as given by the said two sundry creditors. The two sundry creditors were out of station when the notices had been issued by the AO and the assessee would be able to produce the said two sundry creditors before the AO for examination - the issue in respect of the sundry creditors Shri Atul Kr. Jena and Shri Gouri Shankar Nayak is liable to be restored to the file of the AO for readjudication – Decided partly in favour of As ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that Shri Sudhir Patra had expired. Shri Atul Kr. Jena and Shri Gouri Shankar Nayak did not appear in response to the notices u/s. 131 of the Act as they were out of station. It was the submission that the Ld. CIT(A) had recorded the statements from the two persons who had appeared and they had confirmed the transaction with the assessee and had also confirmed the balance as mentioned in the accounts of the assessee. It was the submission that, however, the AO on the ground that sundry creditors who were the middle man who had procured the paddy from the farmers and supplied the same to the assessee was unable to prove their transactions with the farmers, had treated the sundry creditors as unexplained cash credit that the assessee had fail ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e genuineness of their transactions and they had no details of the farmers from whom the paddy had been procured. It was the submission that the orders of Ld. CIT(A) and the AO were liable to be confirmed. 5. We have considered the rival submissions. A perusal of the assessment order clearly shows that though the AO has issued summons to four persons only two of them had appeared namely, Shri Purna Chandra Giri and Shri Sudhanshu Sekhar. A perusal of the statements of the said two persons clearly show that they have confirmed the transaction with the assessee. Shri Sudhanshu Sekhar further confirmed that he has transacted with other concerns also. In the case of Shri Purna Chandra Giri, he has specifically confirmed the transaction specif ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ak is liable to be restored to the file of the AO for readjudication after granting the assessee adequate opportunity to substantiate their claim. The AO shall intimate the assessee as to when and where the assessee has to produce the said two sundry creditors for examination and the assessee shall produce the said two sundry creditors for examination and verification by the AO. Appeal of the assessee is partly allowed for statistical purposes. 7. As the appeal of the assessee has been disposed of the assessee has withdrawn its stay petition. Consequently, the stay petition filed by the assessee stands dismissed as withdrawn. 8. In the result, appeal of the assessee is partly allowed for statistical purposes and Stay petition of the ass ..... X X X X Extracts X X X X X X X X Extracts X X X X
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