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TMI Blog2023 (7) TMI 1200X X X X Extracts X X X X X X X X Extracts X X X X ..... ountant Member And Shri T.R. Senthil Kumar, Judicial Member For the Assessee : Shri Dhinal Shah, A.R. For the Revenue : Shri Mahesh Parwani, Sr.D.R. ORDER PER : T.R. SENTHIL KUMAR, JUDICIAL MEMBER:- This appeal is filed by the Revenue as against the appellate order dated 21.08.2019 passed by the Commissioner of Income Tax (Appeals)-10, Ahmedabad arising out of the exparte assessment order passed under section 143(3) r.w.s. 144 of the Income Tax Act, 1961 (hereinafter referred to as the Act ) relating to the Assessment Year (A.Y) 2014-15. 2. The brief facts of the case is that the assessee is an individual and Proprietor of Nishra Enterprise dealing in waste craft paper. For the Assessment Year 2014-15, the assessee filed its Return of Income on 29-11-2014 declaring total income of Rs. 3,55,840/-. The return was taken up for scrutiny assessment, as large amount of sundry creditors with respect to turnover of the assessee Firm compared to the preceding year. The assessee claimed sundry creditors amounting to Rs. 6,15,17,916/- for the Assessment Year 2014-15, whereas the previous Assessment Year 2013-14, the assessee had shown creditors of only Rs. 84,23, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... opies of Audited Accounts, Purchase Bills, Contra Accounts with Bank Statements. After considering the above details, the Ld. CIT(A) held that the assessee had continuous trading relationship with the creditors and the Assessing Officer has sent the Remand Report in a very routine manner without application of mind. 3.2. After considering the documents filed before him, the Ld. CIT(A) found that there is no discrepancy in the sundry creditors which can be added to the taxable income of the assessee and thereby deleted the addition made by the Assessing Officer observing as follows: On the other hand the appellant has filed all documents as per paper book in 99 pages and stating as under: Merits: 3. The learned AO while submitting the remand report stated that the assessee did not produce the supporting evidences. In fact, it is the duty of the AO to issue notice to the assessee to furnish the supporting evidences. In the absence of any such notice, it is not proper to take a view that in the absence of supporting evidences, the addition should be sustained. The assessee now furnishes the supporting evidences as under: (a) Audited Accounts (b) Purchase ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Less: Opening Sundry Creditors 84,23,451 As per Assessment Order 5,30,94,465 As stated in the Table, the contra accounts are forming part of paper book. The few bills for the purchase with the payment by account payee cheque shown in the bank statement are forming part of paper book. 5. From the above, it is clear that the creditors which are added by the AO are genuine and therefore the same should be allowed. Your honour is therefore prayed to allow the appeal. The judicious decision can only be arrived if the facts of the case are seen and appreciated. In this case, the appellant has in his possession the report u/s. 44AB dated 28-11-2014, copy of return of income filed by the creditors, the PAN and full addresses of the creditors, copy of account of creditors in the books of account of appellant and the proof that the appellant has continuous trading relationship with the creditors All such evidences are corroborative and cannot be m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... deleted the addition made on account of sundry creditors as bogus creditors. 6.1. The Ld. Counsel also submitted before us Jurisdictional High Court judgment in the case of CIT Vs. Nangalia Fabrics Pvt. Ltd. reported in [2013] 40 taxmann.com 206 wherein it was held that where purchase were supported by bills, entries were made in the books of account and payments were made by cheque, the said purchases could not be held as bogus purchases . 6.2. The assessee further relied upon various decisions of the Tribunal in those lines and pleaded that the Ld. CIT(A) is correct in deleting the addition on account of bogus purchases made by the A.O. Thus the CIT(A) order does not require any interference and the Revenue appeal is liable to be dismissed. 7. We have given our thoughtful consideration and perused the materials available on record including the Paper Book filed by the assessee. The case of the Revenue is that in spite of 10 hearing notices, the assessee failed to appear and explain the case of the assessee before Assessing Officer which resulted in passing exparte assessment order. During the appellate proceedings, the assessee explained his illiteracy and thereby file ..... X X X X Extracts X X X X X X X X Extracts X X X X
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