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TMI Blog2015 (6) TMI 885X X X X Extracts X X X X X X X X Extracts X X X X ..... e assessment year 2008-09 which was the year under consideration. It is undoubtedly a curious case. Even the liability itself seems under serious doubt. The AO undertook the exercise to verify the records of the so called creditors. Many of them were not found at all in the given address. Some of them stated that they had no dealing with the assessee. In one or two cases, the response was that they had no dealing with the assessee nor did they know him. Of course, these inquiries were made ex parte and in that view of the matter, the assessee would be allowed to contest such findings. Nevertheless, even if such facts were established through bi-parte inquiries, the liability as it stands perhaps holds that there was no cessation or remissio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the Condonation petition and concession given by Ld. Counsel for the assessee, we condone the delay and admit the appeal. 3. The only common issue in these cross appeals of revenue and assessee is as regards to the order of CIT(A) restricting the addition of ₹ 10,04,557/- out of total addition made by AO at ₹ 54,43,228/- of cessation of liability in respect to trade creditors. For this, assessee as well as revenue raised their respective sole ground, which reads as under: Assessee s ground: 1. That on the facts and on the circumstances of the case, the Ld. CIT(A) had grossly erred in confirming the addition of ₹ 10,04,557/- in respect of eight (8) Sundry Creditors out of the total of thirty three (33) Sundry Cr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... spect to these creditors but according to the Inspector s report these creditors are fake and for this, Inspector has reported to the AO, which is reproduced in the assessment order as under: The Inspector visited Jhantipahari to enquire into the transaction with Gobinda Rakshit. He enquired a few persons at Jhantipahari dealing in lottery about Gobinda Rakshit. But none of the persons, whom the Inspector enquired had heard the name of Sri Rakshit. Hence no such creditor ever existed apparently the credit amount is fake. At Jhantipahari the Inspector was referred to the name of Sri Dilip Tantubay who had once been an employee of the assessee and presently dealing in lottery at Chatna. Dilip Tantubay's name does not appear as a cr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... law Addresses of all the persons happen to be the same as mentioned in the list of the creditors as furnished by the assessee and none of the above named three persons were said to have ever dealt in lottery. Accordingly, the AO treated the trade creditors as bogus and added to the returned income of the assessee amounting to ₹ 54,43,228/-. Aggrieved, assessee preferred appeal before CIT(A), who restricted the addition at ₹ 10,04,557/- in respect of eight sundry creditors out of the total 33 sundry creditors. Aggrieved, both the assessee and revenue came in appeal before Tribunal. 5. We find from the above facts that these are trade creditors admittedly coming from earlier years being opening balance ..... X X X X Extracts X X X X X X X X Extracts X X X X
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