9911796707
TMI Blog2023 (5) TMI 1056X X X X Extracts X X X X X X X X Extracts X X X X ..... at in absence of any tangible evidence of the creditors, it is very difficult to accept that the goods were in fact purchased on credit. Reliance can be placed in this regard in the case of ITO vs ZAZSONS Exports Ltd. (LKO). (2) The Ld. CIT(A) has erred in ignoring the various facts of the case that the assessee has inflate the sundry creditors in the garb of sec.40A(3.) read with rule 6DD(e)(ii) of the Act including purchases and unverifiable stock register etc. This is very much possible that the payment we made in cash from undisclosed sources but such payment was not accounted for and creditors were shown. The assessee has made total payment in cash for purchase. It is important to note that the assessee is making 100% sale to its sis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ry creditors towards purchase of raw meat of Rs.4,95,25,264/- as on 31.03.2012. 5. The AO asked the assessee to submit evidence/proof of the raw meat purchased, transportation bills, ledger account of purchase and of creditors alongwith list of sundry creditors etc. Further, the assessee has provided list of around 400 sundry creditors having name and amount written on three pages only without any proof/evidence/bills of purchase. But the assessee even after repeated opportunity could not produce address of these creditors so that notices u/s 133(6)/summons could be issued to confirm the genuineness of creditors. The assessee also did not produce PAN of the creditors to confirm their identity. In absence of PANs even creditworthiness of cr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h would have contained any details as to quantity of meat, type of meat and rates paid to them. During the year relevant to the A.Y. 201213, the assessee had purchased raw-meat amounting to Rs.112.67 Crores from the sundry meat suppliers then processed the raw-meat and sold to its associate concern for a sum of Rs. 120.96 Crores. 7. Arguing against the observation of the ld. CIT(A) differentiating between the trade creditors and loan creditors the ld. DR relied on the judgment of Hon'ble Karnataka High Court in the case of Shri P. M. Abdulla Vs. ITO in ITA Nos. 719 & 803/2009 vide order dated 09.06.2015 wherein it was held that, the assessment order would also indicate that in respect of the sundry creditors as reflected in the balance she ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er which has been sold for Rs.120.96 Cr. and the net gain has been duly disclosed. * The payment to raw-meat suppliers have been made duly complying with the provisions of sec 40A(3) read with rule 6DD(e)(ii). * During the course of the assessment proceedings, the Assessing Officer vide order sheet entry dt. Oct 15th 2014 had asked them to file names & addresses of Sundry Creditors above Rs. 5 Lacs. The required list giving names & addresses of parties above Rs. 5 Lacs was duly provided during the course of asstt proceedings. * The payments to all these suppliers have been made and there were no outstanding dues of the suppliers. * The appellant was maintaining complete books of accounts i.e. cash book, ledger, stock register & the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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