Deduction cannot be allowed merely because notice were not issued to bogus creditors

Brief of the Case In the case of Commissioner of Income Tax Vs.Karnataka Planters Coffee Curing Works (P) Ltd. assessee had shown sudden increase in creditors without any matching purchase transactions. The assessee claimed it to be crop loans raised in the names of planters within the family circle from bank and given to the assessee. The Hon’ble High Court had reversed the findings of the lower authorities on the ground that all the persons who had advanced loan to the assessee ought to have been given notice. The Hon’ble Supreme Court held that since it is clear from the findings of the...