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TMI Blog2015 (7) TMI 362X X X X Extracts X X X X X X X X Extracts X X X X ..... actor to be considered for resolving the issue.The FAA has given a finding of fact that part of the goods received by the assessee was forming part of closing stock.A There is nothing, in the order of the AO,about the cash trail. Secondly, proof of movement of goods is not in doubt. Thererfore, considering the peculiar facts and circumstances of the case under appeal,we are of the opinion that the order of the FAA does not suffer from any legal infirmity and there are not sufficient evidence on file to endorse the view taken by the AO.So,confirming the order of the FAA - Decided against revenue. - ITA No. 5706/Mum/2013 - - - Dated:- 13-5-2015 - I. P. Bansal, JM And Rajendra, AM,JJ. For the Appellant : Shri Bhupendra Shah For ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dual,proprietor of M/s. Hydro Pure System,is engaged in the business of installation,erection and servicing of water purifying systems.He is deriving income from business and other sourses. He filed his return of income on 28.9.10,declaring total income of ₹ 18.40 lacs. The AO completed the assessment u/s.143(3) of the Act on 1/3/ 2013,determining the income of the assessee at ₹ 1,56,05,880/-. The effective GOA is about deleting the addition of 1.37 crores made by the AO,u/s. 69C of the Act. During the assessment proceedings the AO directed assessee to furnish a list of persons from whom he had made purchases. He found that following parties from whom the assessee had shown purchases were appearing in the list of suspicious ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unt, that the parties concerned had submitted relevant supporting documents, i.e. sales tax confirmation and copies sales tax return, that those documents were submitted during assessment proceedings ,that there was no change in the GP ratio,that material purchased during the year was used in production of equipments. After considering the submission of the assessee,the AO that held that same was not acceptable, that the sales tax department had carried out investigation about the above mentioned seven parties, that the sales tax authorities had concluded that those parties had not indulged in genuine sales/ purchase of goods,that the assessee had not produced the parties, that the purchases made by the assessee, per se,was not the issue, t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was merely relying on the list of the suspicious dealers published by the VAT department, the AO did not dispute the delivery of goods.The assessee relied upon the cases of Bajrang Oil (12 ITD 631), Milk Food (65 TTJ 848), M/s. Balaji Textile Ind.(49 ITD 117) and Nahar Spinning Mills Ltd. (8 SOT 6) After considering the submissions of the assessee and the assessment order,the FAA held that the purchases had been made through A/c.payee cheques that were duly reflected in the bank statement of the assessee, that the assessee had produced register of material purchased, copies of VAT returns,IT returns and confirmation of parties from whom the alleged purchases were supposed to have been made alongwith their MVAT reports,that the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ination of the above referred seven parties was not allowed even though the assessee had requested for the same. 5. We have heard the rival submissions and perused the material before us.We find that the AO had not doubted the genuineness of the purchase but had made the disallowance of ₹ 1.37 crores invoking the provisions of 69C of the Act.We find that in similar circumstances the Tribunal had deleted the addition made by the AO in the cases relied upon by the AR of the assessee.In the case of Rajiv G Kalathil (supra),to which one of us was party identical issue has been decided as under :- 2.3. Before us,Departmental Representative argued that both the suppliers were not produced before the AO by the assessee,that one of them ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as forming part of closing stock.As far as the case of Western Extrusion Industries. (supra) is concerned,we find that in that matter cash was immediately withdrawn by the supplier and there was no evidence of movement of goods.But,in the case before us,there is nothing, in the order of the AO,about the cash traial. Secondly, proof of movement of goods is not in doubt. Thererfore, considering the peculiar facts and circumstances of the case under appeal,we are of the opinion that the order of the FAA does not suffer from any legal infirmity and there are not sufficient evidence on file to endorse the view taken by the AO.So,confirming the order of the FAA,we decide ground no.1 against the AO. Respectfully following the above and consider ..... X X X X Extracts X X X X X X X X Extracts X X X X
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