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TMI Blog2025 (1) TMI 25X X X X Extracts X X X X X X X X Extracts X X X X ..... itors as stated by Shri A.N.Boopathy is not at all relevant. We noted that there are contradictions and logical flaws in his statement as brought out by the CIT(A) and as noted by the CIT(A). The fact that Shri A.N.Boopathy considered loose sheet No.12 as the list of actual creditors as on 31.03.2017 which is supposed to include in trade payables of Paranthaman concerns also, is discussed and analyzed by the CIT(A). It is fact that once quantum of actual sundry creditors as on 31.03.2017 was disposed off by the CIT(A) based on loose sheet, particularly loose sheet no.12, the claim of the AO in the same breath that loose sheet no.11,12 13 contained the name of fictitious creditors introduced in place of Paranthaman concerns fails. We noted that seized loose sheet contained print out of group summary of sundry creditors which do not contain the complete list of sundry creditors as per the books of account and they contained partial list taken for the purpose of reconciliation in the process of finalization of accounts. Thus, difference in the amount of sundry creditors as on 31.03.2018 was explained by Shri A.N.Bhoopathy as mentioned in the seized loose sheets in his statement as pay ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... itors). The difference in creditor balance between loose sheet No.14 and other pages was duly explained by Director of the assessee company as payment made outside the books of account. 2.2 The Ld.CIT(A) erred in holding that the statement of Shri A.N.Boopathy, Director of the assessee company is not corroborated by the seized material. The CIT(A) failed to appreciate that statement is corroborated by seized loose sheets which indicated the difference in balance of trade payables-others as on 31.03.2018 and the said difference is only explained by Shri A.N.Boopathy in his statement as payment made to Shri Paranthaman outside the books . 3. Brief facts are that the assessee company is engaged in the business of drilling bore wells and water wells. A search was conducted in the case of one Shri S.Vishnu at Villa No.16 17, Natchatra Classic, Kalapatti, Coimbatore-641 035, from where loose sheet was seized vide annexure ANN/NK/SV/LS/S/dated 05.07.2018. The AO during the course of assessment proceedings noticed from loose sheets, particularly, page no.14 that reflects sundry creditors of the assessee company, Anbu Infratech Private Limited, which shows that sundry creditors were settled ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ced as under:- 2. The assessment proceedings u/s 153C r.w.s. 143(3) of the Act, was completed on 28.09.2021 by making an addition of Rs. 4,00,00,000/- u/s 69C of the Act as unexplained expenditure from undisclosed sources. A search was conducted on the premise of Shri. S. Vishnu at Villa No. 16 8.17, Natchatra Classic, Kalapatti, Coimbatore - 641035, in connection with the search in the case of M/s Christy Friedgram Industry group. During the search proceedings, some loose sheets were seized vide annexure.ANN/NK/SV/LS/S dated 05.07.2018. It was noticed in page 14, that sundry creditors of M/s Anbu lnfratech for the period 01.07.2017 to 31.03.2018 was settled by the way of cash outside the books. The page contained group summary of sundry creditors, with names and corresponding closing balances, of M/s. Anbu lnfratech for the period 01.04.2017 to 31.03.2018. There were handwritten notings against various parties mentioned in the summary as settled , settled 50% cash. 50 Neft-Axis Bank , Settled Cash , etc. Shri. A.N. Bhoopathy, Director of M/s Anbu lnfratech, vide his reply to question no. 8 of his sworn statement u/s 131(1A) of the Act dated 05.07.2018 stated that trade Payableothe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ounts of various creditor parties, out of which the amounts payable to Paranthaman concerns amounted to Rs. 3,91,63,333/-. Thus, it is evident that the statement of Shri.A.N.Boopathy that the trade payables of nearly Rs. 4 Crores to Shri.Paranthaman (M/s Paranthaman Exporters and M/s Paranthaman Hydraulics and Equipments) are forming part of the sundry creditors of Rs. 4,66,78,340/- in the books of account as on 31.03.2017 is contrary to the facts as evidenced in the books of account and the financial statements. Further, the CIT(A) analyzed the seized materials vis- -vis evidences filed before him i.e., books of account and finally noted that evidences clearly proves that statement of Shri A.N.Boopathy, Director of the assessee was wrong and based on the evidences, the CIT(A) deleted the addition by observing in para 9.4.21 of his order, which read as under:- 9.4.21 In this regard, it is noticed that the Appellant furnished the ledger account copies of the creditors against whose names the handwritten noting were found in the seized loose sheets to the AO during the assessment proceedings vide letter dated 09.09.2021 and explained that the credit balances in the said cases were se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erial is devoid of any evidence regarding alleged payment of trade payables due of Shri Paranthaman concerns outside books of accounts. We noted that although there is statement of Shri A.N.Boopathy, but this is a rebuttable statement and the assessee has led evidence in the shape of books of account which clearly reflects the trade payables as outstanding and moreover, seized materials confirms that. The contention of the Revenue that it is natural that name of Shri Paranthaman concerns did not figure in loose sheets in page no.14, since it is the list of actual sundry creditors as on 31.03.2018 and they did not figure in loose sheet no.11, 12 and 13, since they contain names of fictitious creditors as stated by Shri A.N.Boopathy is not at all relevant. We noted that there are contradictions and logical flaws in his statement as brought out by the CIT(A) and as noted by the CIT(A) in para 9.4.13 of his order. The fact that Shri A.N.Boopathy considered loose sheet No.12 as the list of actual creditors as on 31.03.2017 which is supposed to include in trade payables of Paranthaman concerns also, is discussed and analyzed by the CIT(A) in para 19.4.13 of his order. It is fact that onc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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