9911796707
TMI Blog2014 (12) TMI 22X X X X Extracts X X X X X X X X Extracts X X X X ..... the goods ordered had been supplied satisfactorily and payments had been made by account payee cheques, the assessee is not supposed to keep track of the addresses of suppliers - these creditors are not old creditors and also paid by account payee cheques after the purchases were materialised so as to presume that there was cessation of liability. AO has not brought any material to establish that the asssessee has made purchases in cash - material on record proved that the payments were made by account payee cheques, which were duly debited in the assessee’s bank account and credited in the bank accounts of the suppliers - AO himself verified the payments made by the assessee and such payments were duly credited in the bank account of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ash purchase and introducing bogus sundry creditors is perverse keeping in view the fact that the Assessing Officer had irrefutably proved these facts after making an extensive enquiry. iii) Whether on the facts and in the circumstances of the case the Learned Tribunal erred in law and was not justified in dismissing the appeal filed by revenue is perverse keeping in view the non consideration of following facts:- (a) Out of seven sundry creditors in relation to which addition was made by the assessing officer, four were proprietary concerns of one individual and three were proprietary concern of another individual and a genuine businessmen would not float multiple proprietary concerns for the same business. (b) None of the seven s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Income Tax IV Vs. Empire Builtech Private Ltd which are of no help to the Revenue in the facts and circumstances of this case. We find that the Assessing Officer had called for information from the Branch Manager, Vijaya Bank, N.S. Road Branch, Kolkata-1 of which the assessee was the constitutent under Section 133(6) of the Act and had found as under: To verify the genuineness of the claim of payment against purchase for the year, vide this office letter no ITO Ward 35(4)/Kol/2007-08/1063 dated 04-12.2007, an information was sought u/s.133(6) of the Act, fro the Branch Manager, Vijaya Bank N.S. Road, Branch, Kolkata-1 regarding the name of the clearing bank, branch and name of the A/c. Holder where those cheques have b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lied satisfactorily and payments had been made by account payee cheques, the assessee is not supposed to keep track of the addresses of suppliers. However, no defect was pointed out by the AO in the books of account so as to allege availability of cash or to dislodge the reply of the assessee that the payments were made by account payee cheques. These creditors are not old creditors and also paid by account payee cheques after the purchases were materialised so as to presume that there was cessation of liability. 6.3. The creditors were paid by account payee cheques after purchases, thus, the liability is squared up by making actual payment. After recording detailed findings at para 4.3; the ld.CIT(A) has deleted the additio ..... X X X X Extracts X X X X X X X X Extracts X X X X
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