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TMI Blog2021 (10) TMI 1239X X X X Extracts X X X X X X X X Extracts X X X X ..... e business of trading in healthcare products through his proprietary concern, M/s Shivam Enterprises. For the assessment year under dispute, assessee filed his return of income on 26-11-2014 declaring total income of Rs. 6,42,750. In course of assessment proceedings, the assessing officer noticed that as against purchases shown of Rs. 1,50,73,562/- assessee has shown creditors of Rs. 2,41,16,702/- in the current year's balance-sheet. Whereas, in the preceding assessment year the assessee had shown purchases of Rs. 2,82,01,376/- and sundry creditors of Rs. 2,07,60,801/-. Noticing the above, the assessing officer called upon the assessee to furnish the details of sundry creditors. After perusing the details furnished by the assessee, the asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ss remained unserved. Further, the Inspector deputed to ascertain the genuineness of M/s Khushal Trading Corporation reported that there was no business undertaking in the said name at the given address. However, in response to notice issued under section 133(6), M/s Khushal Trading Corporation furnished certain documentary evidences such as profit and loss account, balance-sheet; income-tax return filing acknowledgements for various years and ledger account of M/s Shivam Enterprises for some years. Further, M/s Khushal Trading Corporation also furnished sales invoices for Rs. 22,50,000/- and Rs. 20,25,000/-. However, since complete ledger account was not furnished, learned Commissioner (Appeals) issued a notice under section 251(1)(a) of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... M/s Khushal Trading Corporation. Thus, he submitted, the disallowance made is unjustified. 5. The learned departmental representative, relying upon the observations of learned Commissioner (Appeals) submitted that on enquiry made, the concerned party was not found at the given address. Further, she submitted, assessee's ledger account copy was not furnished by the concerned party despite repeated requests by learned Commissioner (Appeals). She submitted, even the Inspector deputed to conduct a physical enquiry has reported that no such party was available at the given address. Thus, she submitted, since the genuineness of purchases could not be established, disallowance made was justified. 6. I have considered rival submissions and peruse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... AT audit report and Sales-tax return of M/s Khushal Trading Corporation, wherein, the transaction with the assessee has been reflected. It is also evident, the assessee has made payment for purchase to M/s Khushal Trading Corporation through banking channel. Thus, from the aforesaid facts and evidences available on record, it can be said that not only the identity of M/s Khushal Trading Corporation is established but the assessee had purchased goods from the said party is also proved, as the concerned selling dealer has also furnished confirmation of account. Thus, in such circumstances, the amount of Rs. 42,75,000/- cannot be treated as unexplained cash credit as the identity, genuineness and creditworthiness have been established. 7. Hav ..... X X X X Extracts X X X X X X X X Extracts X X X X
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