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TMI Blog2015 (10) TMI 2504X X X X Extracts X X X X X X X X Extracts X X X X ..... purchases made, that entire purchases could not be doubted.We find that after segregating the purchases in two categories the FAA had judiciously upheld a portion of it and deleted the other portion.It was found by her that the assessee had not proved the purchases to the tune of ₹ 1.05 crores and she had confirmed the addition.As far as the remaining addition is concerned,we are of the opinion that her order does not suffer from any legal infirmity especially after the reconciliation statement was filed by the assessee before her. - Decided against revenue - ITA No. 2566/Mum/2013 - - - Dated:- 14-10-2015 - S/Sh. Rajendra, Accountant Member Sanjay Garg, Judicial Member For the Appellant: Shri Devendra Jain For the R ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee various opportunities to produce the parties and to file details of transportation of the goods.As per the AO, the assessee merely submitted the accounts of the parties, that in some cases it did not file full addresses of the parties from whom he had purchased goods. He directed the assessee to substantiate his claim by furnishing details of the parties along with documentary evidences and to show that all the purchases were covered under the provisions of Rule 6DD(e)(i).After considering the reply of the assessee,the AO held that he had not produced the corroborative documents to prove the purchase of ₹ 3.95 crores,that he did not furnish the addresses of the parties from whom goods were purchased,that no stock register was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... about it in his report,that the assessee had claimed that he had gone into ginning and processing business,that the claim made by him did not much substance,that there was no documentary evidence to support the claim.He directed the assessee to file details of location of the factory.But,no details were made available by the him to the FAA.He held that the claim made by the assessee about purchase of raw cotton from URD remained unreconciled,that the assessee had not reconciled mismatch of quantity of raw cotton,that the assessee had produced any supporting evidence that the farmers from whom he had purchased the goods has actually grown cotton in their fields.He issued a fresh show cause notice to the assessee on 13.12.2012 to furnish par ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... utstanding in the books of account could not be verified, that the assessee himself had pleaded that disallowance u/s. 68 if at all was to be made same had to be restricted to ₹ 1.05 crores. The FAA held that the cases cited by the assessee ELand International (P) Ltd. (26 DTR 113) Saraf Gramudyog Sansthan (108 ITD 115) were no held, that the facts of the case under appeal were totally different. Accordingly,he held that the disallowance had to be made for the sundry creditors outstanding.Finally,he upheld the addition of ₹ 1.05 crores out of disallowance made of ₹ 3.95 crores. 4. During the course of hearing before us the ,Authorised Representative (AR) stated that the assessee has produced quantitative reconciliatio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e entire addition, that the AO had accepted the sales with regard to purchases made, that entire purchases could not be doubted.We find that after segregating the purchases in two categories the FAA had judiciously upheld a portion of it and deleted the other portion.It was found by her that the assessee had not proved the purchases to the tune of ₹ 1.05 crores and she had confirmed the addition.As far as the remaining addition is concerned,we are of the opinion that her order does not suffer from any legal infirmity especially after the reconciliation statement was filed by the assessee before her.Here we would like to refer to the case of Nikunj Exim Enter - prises(P)Ltd.(supra) of the Hon ble Bombay High Court wherein the court has ..... X X X X Extracts X X X X X X X X Extracts X X X X
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