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TMI Blog2016 (4) TMI 638X X X X Extracts X X X X X X X X Extracts X X X X ..... learned Commissioner and the Tribunal is erroneous. Such amount is the liability towards the suppliers and could not be added as a cash credit entry, when the purchase of the material including the price of the material supplied by the 15 suppliers is admitted. Thus, the addition of ₹ 9,17,846/- as cash credit entry is not sustainable. Consequently said finding is set aside and the question of law is answered in negative and in favour of the assessee and against the Revenue. - Misc. Appeal No. 25 of 2008 - - - Dated:- 16-3-2016 - Hemant Gupta And Ramesh Kumar Datta, JJ. For the Petitioner : Dr. R. Usha, Adv. and Mrs. Sabita Kumari, Adv. For the Respondent : Mr. Rishi Raj Sinha, Adv. Mrs. Archana Prasad, Adv. JUDGME ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt appeal. This Court framed the following substantial question of law:- Whether on the facts and in the circumstances of the case the Tribunal was justified in not allowing a sum of ₹ 9,17,846/- outstanding credit assessed in the income at the hands of the Appellant . 5. Learned counsel for the appellant vehemently argued that the Assessing Officer has accepted the purchases of ₹ 1,09,67,551/- out of which an amount of ₹ 1,00,49,705/- was paid during the relevant Assessment Year. The sum of ₹ 9,17,846/- was the balance due amount. The said amount was shown as a liability to be paid to the suppliers, which was actually paid to the suppliers in the next financial year in the month of April and May. It is cont ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on this issue, inasmuch as, on the basis of the findings recorded by it that these two amounts represented purchases made by the respondent-assessee on credit and the purchases and sales having been accepted by the Department, the question of addition of the aforesaid two amounts under section 68 of the Act did not arise inasmuch as the provisions of section 68 of the Act would not be attracted on the purchases made on credit. 7. We find merit in the argument raised. The Assessing Officer has accepted purchases of ₹ 1,09,67,551/- out of which ₹ 1,00,49,705/- stood paid during the relevant assessment year. Therefore, the remaining amount is a liability which the assessee has to discharge, which he discharged in the next fin ..... X X X X Extracts X X X X X X X X Extracts X X X X
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