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TMI Blog2015 (6) TMI 454X X X X Extracts X X X X X X X X Extracts X X X X ..... see, the claim of expenditure cannot be brushed aside lightly. We, therefore, decline to interfere with the findings of the Ld. CIT(A). - Decided against revenue. Cessation of liability u/s. 41(1) - Held that:- Perusal of the ledger account of the parties show that out of the balance shown in the name of Hetal Sales Corporation amounting to ₹ 6,24,721/-, ₹ 3,00,000/- have been made on 18.2.2010, ₹ 3,24,721/- was paid on 12.10.2010. Similarly in the case of Sandesh Sales Corporation, the payment has been made on 31.12.2009, Shakti Trading Company the payment has been made on 2.5.2009, 29.5.2009, 18.12.2009 and 3.2.2010. Similarly, all the transporters mentioned hereinabove have been paid in subsequent years. The payment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s (Rs.) 1. Vijay Transport ---- 374960 2. Siddhivinayak Corporation 2051744 2004953 3. Hetal Sales Corporation --- 624721 4. Naman Enterprises 1269911 1269911 5. Parvati Transport --- 564895 6. Psanda Transport ---- 564796 7. Vishal Transport --- 695510 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ppeared in the list of suspicious parties VAT No. of some of these parties are already been cancelled. To make further verification, the AO deputed Ward Inspector who submitted that the following parties do not exist. S. No. Name of the party Serial number in the list available with this office Remarks 1. Siddhivinayak Corporation 578 VAT Cancelled 2. Hetal Sales Corporation 201 VAT Cancelled 3. Naman Enterprises 333 VAT Cancelled 4. Shakt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ned, the assessee has discharged the onus of proving that purchases were genuine and payments have been made from the bank account. The Ld. CIT(A) further observed that the AO has not doubted the source of payment or the fact that the said purchases were actually part of the inventory of the assessee which have been used to make further sales. The Ld. CIT(A) further observed that the assessee has certified the genuineness of the purchases by giving the confirmations. Having been convinced, the Ld. CIT(A) directed for the deletion of the addition of ₹ 90,07,915/-. 4.1. In so far as the addition on account of remission of liability is concerned, the Ld. CIT(A) observed that the assessee had balance outstanding with the parties. The L ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on which is the explanation offered by the assessee is not to the satisfaction of the AO. 5.3. A careful perusal of the order of the authorities below with the documentary evidences brought on record in the form of a paper book, we find that all the payments have been made through cheque, which have been duly certified by the IDBI bank. The certificate is placed at pages 40 41 of the paper book. We also find that the AO has not brought anything on record to disbelieve the explanation of the assessee. The only evidence/reference made by the AO is that the assessee has not provided PAN No. of the parties. This cannot be the sole reason for disbelieving the explanation of the assessee, when the payments have been made by cheque duly refle ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 6. Vaibhav Transport 438,901 7. Vijay Transport 374,960 8. Vishal Transport 695,510 4,379,241 Creditors added to the income Cessation of Liability u/s. 41(1) of the Act 6,153,921/- 5.5 A perusal of the ledger account of these parties show that out of the balance shown in the name of Hetal Sales Corporation amounting to ₹ 6,24,721/-, ₹ 3,00,000/- have been made on 18.2.2010, ₹ 3,24,721/- was paid on 12.10.2010. Simila ..... X X X X Extracts X X X X X X X X Extracts X X X X
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