133 (6) of it act

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Aniket Shavdia (Querist)
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14 December 2011 Dear Sir
I need your valuable suggestion on following issue:

A case is pending before ITO, the ITO has called for information from creditors/other parties u/s.133(6). The notice has been duly served since none of the notice returned undelivered.

Now, the point is if some of the creditors/other parties do not reply to that notice, what can be the implication on us. Can we take any further stand on this issue.

Please suggest with supported case laws if possible.

Ratan Sharma

Ratan Sharma (Expert)
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14 December 2011 You should submit xerox copy of bills , creditors ledger with the A.O. It is the responsibility of the assessee to prove his creditors as genuine. You can yourself obtain the confirmation letters from creditors and submit with A.O. Try to prove that the creditors account is genuine alongwith supporting bill, transport receipt, bank account etc. You should discharge your liability by showing that your books of correct as per the supporting evidences available with you. If the creditor is not responding to the summons then what you can do? However you should submit all the relevant records in support of your accounts. Try to prove identity of creditor & genuineness of transaction. No need to worry, you have co-operated the department, submitted the records available with you therefore no addition can be sustained.

Aniket Shavdia

Aniket Shavdia (Querist)
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15 December 2011 I have submitted all the necessary evidences to prove the genuineness of the creditor/parties. However the assessment is pending all because part of the creditors are not replying to the summon.
Are there any case laws to justify myself that the addition should not be done to the assessee just because creditor have not complied with the summons