9911796707
TMI Blog2017 (1) TMI 987X X X X Extracts X X X X X X X X Extracts X X X X ..... t certain dealers are providing accommodation entries/bills without doing any actual business. On going through the list of such bogus dealers listed by the Sales Tax Department, the AO noticed that the assessee had made purchases from the following dealers, the details of which are as under: - S.No. Name of alleged supplier Amount of alleged purchase (Rs. ) 1 Impex Trading Co. 2,90,80,292/- 2 Victor Intertrade Pvt. Ltd. 1,84,62,093/- Total 4,75,42,385/- 2.2 To ascertain the genuineness of such purchases (supra) the AO required the assessee to show cause as to why the aforesaid purchases amounting to Rs. 4,75,42,385/- should not be treated as unexplained expenditure. In reply thereto, the assessee in submission claimed that purchases from the above two parties (supra) are genuine and reflected in the assessee's books of account and furnished copies of purchase and sales invoices for these purchases, extracts of stock ledger showing the entry and exit of materials, bank statement to show that the above two parties have been paid for purchases made through banking channels by account payee cheques. The AO then, in order to ascertain the genuineness of these partie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) detailed submissions, explanations and representation and copies of evidence such as copies of purchase/sale invoices, challan-cum-tax invoice, extracts of stock ledger showing movements of materials received and sent and detailed bank statements to establish that the payments for said purchases were made by normal banking channels., etc. which were forwarded by the learned CIT(A) to the AO for his comments. In his reply dated 23.07.2014, the AO reiterated the stand taken in assessment proceedings. A copy of the AO's report was given to the assessee for rejoinder thereon for which detailed reply was filed by the assessee vide letter dated 11.08.2014 alongwith a paper book (190 pages) containing copies of assessee's financial statements, copies of sworn statements of Shri Pradeep Vyas and Shri Ketan Shah given to Sales Tax Department and relied on by the AO. In submissions made, the learned A.R. of the assessee, apart from reiterating the details and evidences put forth to establish that the purchases were not bogus, contended that the AO having not doubted or questioned the sales affected in respect of the said purchases, therefore the purchases made by the assessee could not be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... IT(A) right in deleting the addition u/s.69C of the Act to the tune of 4,75,42,385/- on account of non-genuine purchases made from Two Vendors viz M/s. Impex Trading Co. and M/s. Victor Inetertrade Pvt. Ltd.? ii. Whether on the facts and in circumstances of the case and in law, Ld.CIT(A) was right in ignoring the fact that the vendors did not file any reply or submission in the response to notice u/s.133(6) of the Act nor did assessee produce these vendors before the A.O during the assessment proceeding to establish the genuineness of the transactions? iii. Whether on the facts and in circumstances of the case and in Law, the Ld (CIT)(A) was right in ignoring the fact that no delivery challans are available in respect of delivery of goods by the alleged parties nor physical stock register, inward register, lorry /Transportation bills have been produced to prove that goods have actually been delivered /purchase? vii. The appellant prays that the order of the CIT (A) on the above grounds be set aside and that of the A.O. be restored. vii. The appellant craves leave to amend or alter any grounds or add a new ground which may be necessary." Though numbered (i) to (viii), we r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... an appreciation of the material on record, it is evident from the order of the assessment that it is on the basis of information obtained from Sales Tax Department that the AO issued the show cause notice to the assessee to explain the said purchases and issued notices under section 133(6) of the Act to the said two parties from whom the said purchases were made, to which there was no response. The AO primarily relying on the information obtained from the Sales Tax Department and sworn statements given before the Sales Tax Department by Sri Pradeep Vyas of M/s. Victor Intertrade P. Ltd. and Shri Ketan Shah of M/s Impex Trading Company held the said purchases to be bogus. While it may be true that the said two purchase parties did not appear before the AO, for whatever reasons, the fact remains that the assessee itself had filed copies of purchase bills, copies of purchase/sale invoices, challan-cum tax invoices in respect of purchases, extracts of stock ledgers showing entry/exit of materials; copies of bank statements to evidence that payment from these purchases were made through normal banking channels, etc. to establish the genuineness of the said purchases. It is a fact eviden ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
