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TMI Blog2019 (4) TMI 1374X X X X Extracts X X X X X X X X Extracts X X X X ..... s on account of unverified purchases u/s 37 of the Act, which does not need any interference on my part, hence, uphold the action of the Ld. CIT(A) on the issue of dispute and reject the ground raised by the assessee. Unexplained creditors - these creditors have been created on account of purchases made in FY 2008-09 and have been brought forward since then - on one hand the AR states that there addresses are not available as the creditors are old on the other hand it is claimed that cash payments have been made to them - HELD THAT:- It is revealed from these facts that the assessee has obtained benefit by cessation of these liabilities as there is no evidence on record to show that these creditors have even made claim to recover the ou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ss of ₹ 1,73,420/-. The case was selected for compulsory scrutiny and system. The notice u/s. 143(2) of the Income Tax Act, 1961 (In short Act ) dated 26.9.2014 was issued. Again notices u/s. 143(2)/142(1) of the Act were also issued on 12.8.2015 to the assessee. Further, notice u/s. 142(1) of the Act, alongwith detailed questionnaire was issued to the assessee on 12.10.2015 and in compliance to the same, requisite details / evidences were filed which were considered during the course of assessment proceedings. Computerized books of accounts produced alongwith the bills and vouchers have been examined. The AO passed the assessment order u/s. 143(3) of the Act dated 23.3.2016 and made the additions and assessed the income of the asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... during the year. The assessee has failed to provide the complete details in respect of the said creditor during the assessment proceedings and therefore the same has remained unverified. It has been claimed that sales of ₹ 856131/- have been made to the said entity in FY 2013-14 and cash payments have been made for ₹ 208469/- in FY 2014-15 to square up the credit. It is clearly observed by the AO that the assessee has failed to furnish supporting documents to prove the genuineness of sundry creditor. The submission of assessee for making sale and cash payments to it in subsequent FYs. has remained unsubstantiated and is without documentary evidence. It is strange that on one hand that the AR states that there add ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iabilities as there is no evidence on record to show that these creditors have even made claim to recover the outstanding balances from the assessee. It is not relevant that assessee, has shown these credits payables in its books of account, during the year. The overall facts of the case and surrounding circumstances are enough to show that these credit balances have not been claimed by these creditors and thus there is cessation of liability on this account. In the circumstances, Ld. CIT(A) has rightly held that AO was justified to make additions of ₹ 123388/-, ₹ 119100/- and 173110/- thus amounting to ₹ 4,15,598/-, hence, he confirmed the same u/s. 41(1) of the Act, which does not need any interference on my part, hence, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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