ZAZSONS EXPORT LIMITED Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) Heard Sri R.P. Agarwal, learned counsel for the assessee/appellant and Sri Piyush Agarwal, learned counsel for the respondent.

(2.) The assessee has preferred this appeal against the order of the tribunal dated 26.2.2015.

(3.) The assessee is a public limited company engaged in the business of manufacture of finished leather shoe upper and shoes mainly for the purpose of export. In manufacturing the above items it uses raw hide specially raw goat hide. According to the trade practice raw animal hide is purchased by it generally from petty dealers on credit and the payment is made subsequently and as such these dealers are shown in the books of accounts as trade creditors. In respect of the assessment year, 2006-2007 assessee disclosed purchase of raw hide to the extent of (outstanding amount) Rs. 9,03,09,714/- from small vendors.