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TMI Blog2012 (11) TMI 1081X X X X Extracts X X X X X X X X Extracts X X X X ..... in the eye of the law and on facts. 3. On the facts and circumstances of the case, the CIT(A) has erred both on facts and in law in confirming the addition of Rs. 43,34,496/- made by AO. 4. On the facts and circumstances of the case, the CIT(A) has erred both on facts and in law in ignoring the contention of the assessee that the above said addition has been made by AO by arbitrary rejecting the material & evidences brought on record by the assessee to show that the purchases were made in regular course of the business and material so purchased was utilized wholly and exclusively in the regular course of business of the assessee. 5. On the facts and circumstances of the case, the CIT(A) has erred both on facts and in law in ignoring the contention of the appellant that the addition to the trading account by adding purchases without rejection of books of accounts is unsustainable. 6. On the facts and circumstances of the case, the CIT(A) has erred both on facts and in law in ignoring the contention of the appellant that no addition can be made merely on the basis of a statement which stands retracted without any corroboration. 7. On the facts and circumstances of the case ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bills without material and subsequently cash was received back after paying some commission. Total cash amounting to Rs. 40,16,000/- was surrendered as additional undisclosed income of the company for the FY relevant to the AY 2006-07 under consideration. The reopening proceedings were initiated and notice u/s 148 of the Act was issued. In response thereto, the assessee filed return of income declaring NIL income which was originally filed on 10.11.2006. The AO on the basis of statement of Sh. D.K.Jain i.e Director of the assessee company and on the basis of the statements of Sh. Nitin Aggarwal, a partner of Shree Laxmi Industrial Corporation recorded on 14.11.2007 by ADIT(Inv.), has held that the claimed purchases worth Rs. 43,34,495/- from Shree Laxmi Industrial Corporation was not genuine as the same was claimed on the basis of bogus bills only to inflate the purchases. The Ld. CIT(A) has upheld the same. Now the assessee is in appeal before the Tribunal. 5. In support of the grounds, Ld. AR submitted that the AO has made addition in question by rejecting the material and evidence brought on record by the assessee in support of the claimed purchases made in regular course of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e primary evidence before OA in support of the claimed purchases and the AO has made the addition in question without rejecting the same. Ld. AR placed reliance on decision in the case of CIT vs S.Khader Khan Son 214 CTR 589 (Madras). 6. Ld. DR on the other hand placed reliance on the orders of the authorities below. He pointed out that statements were recorded on oath and retraction after one and half month thereafter by the assessee is nothing but an after thought only. He referred following decisions in support :- Works of Art (P) Ltd. Vs. ACIT 65 ITD 40 (Jaipur) Amrit Lal Bhagwan Das Soni Vs. ACIT 59 TTJ 418 (Ahmedabad) Ravindra D.Trivedi Vs. CIT 215 CTR 313 (Rajasthan) P.R.Metrani Vs. CIT 287 ITR 209 (SC) Hira Singh Company Vs. CIT 230 ITR 791 (HP) 7. Considering the above submissions, we find that the authorities below have denied the claimed purchases worth Rs. 43,34,496/- stated to have been purchased from Shree Laxmi Industrial Corporation without rejecting books of accounts or the documents filed in support of doubting the sales declared by the assessee. Undisposedly, the authorities below have not examined the documents filed by the assessee in support of the claimed p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... FY under consideration before the sales-tax authorities showing that purchases reflected in the account of assessee from the firm stood declared by the above firm in the sales-tax return. In other words, they had shown the sales to the assessee company. The said goods supplied by them to the assessee have been utilized by the assessee company in the regular course of manufacture of various tools, dyes, cutting tools etc. submitted by the assessee. At page No-47 -112 have been placed the sales tax documents of Shree Laxmi Industrial Corporation, at page no-113-131 has been placed confirmed copy of accounts in the books of Shree Laxmi Industrial Corporation with purchase bills. At pages No-132-176 has been made available a copy of stock registered and at page nos-187-230 of the paper book has been made available a copy of bank statements of Shree Laxmi Industrial Corporation. The copies of these documents have been furnished under the certificate of the assessee that these documents were made available before the authorities below. None of the authorities below has commented upon the genuineness of these documents or the reasons for ignoring consideration of these documents by them ..... X X X X Extracts X X X X X X X X Extracts X X X X
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