9911796707
TMI Blog2022 (8) TMI 903X X X X Extracts X X X X X X X X Extracts X X X X ..... ax Officer, 13(3)(4), Mumbai (in brevity 'the AO') order dated 30/12/2016, order passed u/s.143(3) of the Income Tax Act, 1961. 2. Brief fact is that the revenue had filed the appeal against the order of the ld. CIT(A) for rejecting the addition amount of Rs.7,52,48,754/- on account of sundry creditors, related to the party M/s. Compact Agencies Pvt. Ltd. The said agency is the major sundry creditors of the assessee company and has filed his only submissions through assessee during the course of assessment and has refused to response to the notice u/s. 133(6) of the Income Tax Act. For the incomplete verification, the addition was made u/s.68 by the ld. AO. Aggrieved, the assessee filed an appeal before the ld. CIT(A). But the ld. CIT(A) d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... anning may be legitimate provided it is within the framework of law. Colourable devices cannot be part of tax planning and it is wrong to encourage or entertain the belief that it is honourable to avoid the payment of tax by restoring to dubious methods. It is the obligation of every citizen to pay the taxes honestly without resorting to subterfuges. Courts are now concerning themselves not merely with the genuineness of a transaction, but with the intended effect of it for fiscal purposes. No one can now get away with a tax avoidance project with the mere statement that there is nothing illegal about it." 7.5 In view of the above discussion, it is established that assessee has inflated sundry creditors amounting to Rs. 7,52,48,874/- and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n Mumbai and second one in Kolkata, and the notice from the Mumbai address was returned unserved and the notice to Kolkata address was served on the assessee. Compact did not reply directly to the AO but furnished details of sales made by it to the assessee through the assessee, that is Tool Art Deco. This raised further doubts in the mind of the AO and he called for the copy of bank accounts of the assessee as well as Compact Agencies and discovered that the supplier, that is, Compact was also maintaining an account with Kotak Mahindra Bank in Andheri East Mumbai whereas its office was located in Kolkata. The AO then discovered from the copy of bank account of Compact that it was purchasing goods from another associate company, SKS Ispat a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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