2014 (6) TMI 602 - AT - Income Tax

Deletion of purchases made Purchases treated as bogus and non-genuine Held that - Following ACIT CC-1(1) Ahmedabad Versus Gujarat Ambuja Exports Ltd. 2014 (6) TMI 349 - ITAT AHMEDABAD - CIT(A) while deciding the appeal has held that the facts of the case in the year under appeal are identical to the facts for earlier assessment year - CIT(A) while deleting the addition has also noted that AO did not issue any summons u/s 131 of the Act to Amber Trading Company and Assessee was also not informed about non production or non -attendance of proprietor - Revenue has not brought any contrary material on record in its support thus there is no reason to interfere in the order of the CIT(A) Decided against Revenue.

Summary

Issues:
Revenue's appeal against CIT(A)'s order for A.Y. 2010-2011 - Deletion of addition on account of purchases from M/s. Amber Trading Co. deemed as bogus and non-genuine.

Analysis:
The appeal was filed by the Revenue against the CIT(A)'s order for A.Y. 2010-2011 concerning the deletion of an addition related to purchases made from M/s. Amber Trading Co., Dahod, treated as bogus and non-genuine. The Assessee, engaged in Agro Processing and Agro Based Products, filed a return of income declaring total income, later revised. The assessment was framed under section 143(3) with the total income determined at Rs. 73,60,50,933/-. The A.O. made an addition of Rs. 9,31,09,522/- on purchases from Amber Trading Co. from unregistered dealers. The CIT(A) granted relief to the Assessee, leading to the Revenue's appeal before the ITAT.

During assessment proceedings, the A.O. noted that a significant portion of the purchases from Amber Trading Co. were from unregistered dealers. The A.O. requested the Assessee to prove the genuineness of these purchases. The CIT(A) deleted the addition after considering the facts, previous decisions, and submissions made by the Assessee. The CIT(A) found the facts similar to earlier years and directed the deletion of the disallowance of purchases made by the A.O.

The Revenue, in its appeal before the ITAT, argued based on the A.O.'s order, while the Assessee relied on previous Tribunal decisions in favor of the Assessee for similar issues. The ITAT reviewed the case and noted that previous Tribunal decisions and the Hon'ble Gujarat High Court's order confirmed the genuineness of purchases from Amber Trading Co. The ITAT found no reason to interfere with the CIT(A)'s order and upheld the decision to dismiss the Revenue's appeal.

In conclusion, the ITAT dismissed the Revenue's appeal, affirming the CIT(A)'s decision to delete the addition on purchases from M/s. Amber Trading Co. deemed as bogus and non-genuine. The judgment highlighted the importance of consistency in decisions based on similar facts and upheld the Assessee's position in line with previous rulings.