9911796707
TMI Blog2016 (4) TMI 29X X X X Extracts X X X X X X X X Extracts X X X X ..... ts were made by Shri Nitin Waghmode, Departmental Representative (DR) on behalf of the Revenue. First, we take up ITA No.3629/Mum/2012 For A.Y. 2007- 08 3. The brief background of the issue involved in this appeal is that during the year under concern, the assessee was engaged in the trading in Iron and Steel scrap and in a small quantity of trading in clothes. During the course of assessment proceedings, the AO asked the assessee to file the details of sundry creditors, in response to which requisite details were filed by the assessee. Thereafter, the AO called for information u/s 133(6) from the parties from whom the purchases were done by the assessee. The AO did not receive satisfactory response with respect to some of the parties an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sales of the appellant are genuine then the purchases of materials also have to be genuine as without purchases there cannot be any sales. 4.4.1. Accepting the sales without there being any corresponding purchases would lead to an absurd situation of sale of materials without any purchases. In the instant case also, the A.O. is not disputing the sales but treating the purchases as bogus would lead to the same absurd situation. If the sales are genuine then the fact has to be admitted that the appellant has made the purchases. 4.4.2. In the business of trading in steel and scrap, it is a general practice that purchases are made from an open market and thereafter the bills are arranged. The fact of existence of bogus bills does not in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erving as under: "6.1. The above arguments of the AR of the appellant have been considered and I intend to agree with these arguments. The appellant has produced the ledger account of M/s. Shree Karni Textiles along with the copies of the purchase bills with corresponding delivery challans. The balance confirmation statement of M/s. Shree Karni Textiles has been submitted during the assessment proceedings. The independent verification of the party has been carried out by the AO through his inspector and the party was found to be in existence at the given address and a finding to this effect has been recorded in the assessment order at page 9. All these facts have not been controverted by the AO and still proceeded to disallow the purchase ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... erial, whatsoever, has been brought on record by Ld AO in assessment proceedings or by Ld DR before us, to show that these purchases were bogus. The factual findings recorded by the Ld. CIT(A) that all the purchases and sales were properly backed up with quantitative re-conciliation, were not controverted by the Ld. DR. In view of the detailed findings recorded by the Ld. CIT(A) which remain uncontroverted, unchallenged and un-rebutted before us, and in view of peculiar facts of this case, we have no other option but to uphold the order of Ld CIT(A). Thus, grounds raised by the Revenue are dismissed. Now, we take up ITA Nos.2993 & 2994/Mum/2013 For A.Ys. 2005-06 & 2006-07: 3.8. It has been submitted by Ld. DR that facts and issues involv ..... X X X X Extracts X X X X X X X X Extracts X X X X
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