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TMI Blog2017 (11) TMI 455X X X X Extracts X X X X X X X X Extracts X X X X ..... ddition has been made in the A.Y.2010-11 and corresponding closing stock for the A.Y.2010-11 which is opening stock for A.Y.2011-12 has already been given effect, the addition so made in the A.Y.2011-12, appears to consequential in nature. AO is directed to verify the same and pass order afresh as per law. We direct accordingly. - ITA No.2735/Mum/2015 And 2736/Mum/2015 - - - Dated:- 25-9-2017 - SHRI R.C.SHARMA, AM AND SHRI SANDEEP GOSAIN, JM For The Assessee : Shri Sandip Kejriwal For The Revenue : Shri Saurabh Rai ORDER PER R.C.SHARMA (A.M): These are the appeals filed by the assessee against the order of CIT(A)-16, Mumbai dated 05/01/2015 for the A.Y.2010-11 2011-12 in the matter of order passed u/s.143(3) of the IT Act. 2. The following grounds have been taken by the assessee in the A.Y.2010-11:- 1. On the facts and circumstances of the case and in law, the Hon'ble CIT(A) erred in upholding the disallowance made by the Learned Assessing Officer of ₹ 20,00,000/- from the current year's purchases considering same as non-genuine and unexplained expenditure without considering the fact that the said purchases were used in const ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 8997 31.03.2008 19800851 31.03.2009 28378533 31.03.2010 28226547 6. Vide order sheet noting dated 21.12.2012, the AR of the assessee was asked to furnish the purchase orders, delivery challans, Goods Receipt Notes and purchase invoices. The assessee was also asked to furnish the party-wise and yearwise details of purchases made by it since the year of commencement of the project. In response, vide its AR's letter dated 04.01.2013, the assessee furnished copies of purchase invoices. By the said letter, the AR of the assessee has stated that in some cases goods were delivered with Delivery Challan, while in some cases the supplier issued Invoice-cum-Challan. 7. After having perused the details of purchases furnished by the assessee company and after having examined the original invoices produced by the assessee on test-check basis, it was observed that the assessee company has purchased steel from one Karma Ispat Limited. From the copies of bills and challans produced, it was observed that no mention of lorry / truck number is there. Therefore, vid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Opening WIP 205086474 Less: Bogus purchases from Karma Ispat Limited during F.Y. 2008-09 9688752 Revised opening WIP 195397722 Add; Project cost (including purchases) incurred during the year 660625564 L ess: Bogus purchases from Karma Ispat Limited during F.Y. 2009-10 2000000 6 4062564 Revised closing WIP as on 31.03:2010' 259460286 10. Having arrived at the revised work-in-progress in respect of the assessee's project viz. Tapovan at Santacruz (West) at ₹ 25,94,60,286/-, the same shall be carried forward to subsequent year and the. income in the year of completion of the said project shall be calculated based on this revised work-in-progress. 11. By the impugned order, CIT(A) deleted the addition of ₹ 96,88,752/-and confirmed the addition of ₹ 20,00,000/- after having the followi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s failed to produce the GRN/Lorry receipt etc. to prove the actual purchases of goods. The case of the assessee is covered by the judgement of the Hon'ble Punjab Haryana High Court in the case of J.R. Solvent Industries (P.) Ltd. (2012) 22 taxmann.com.115 in which it has been held that where the appellant failed to produce the selling dealer alongwith his books of account, the assessee cannot claim the purchase of goods. The assertion of the A/R of the appellant that we have been given to understand that the seller had paid appropriate VAT on the goods sold is only a presumption for which no evidence has been produced by the appellant. The AR of the appellant has gone to the extent of making his statement that the seller is a registered company and the address is available in the public domain and has failed to discharge the onus by bringing on record the correct address of the seller. In the present case it was obligatory for the assessee to produce the seller alongwith the necessary documents to establish the genuineness of the purchasers. Moreover, the payment by cheque is not sufficient to establish the genuineness of the purchasers as held by the Hon'ble Supreme Cour ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... transport related cost was borne by the seller, the assessee does not have GR or Lorry receipt. It was further submitted that the details of purchase, invoice, challans, quantity details, payment evidence, etc were filed during the course of assessment proceedings. It was also submitted that assessee had filed a stock/inventory/consumption summary mentioning the details of purchases made (including the purchases made from the seller) from the beginning of the project till 31 March 2010. The learned AO had not disregarded the said quantity details of purchases and made the additions. 16. Considering the totality of facts and circumstances of the case, we restore this addition back to the file of the AO for deciding afresh after giving due opportunity to the assessee. We direct accordingly. As the addition has been made in the A.Y.2010-11 and corresponding closing stock for the A.Y.2010-11 which is opening stock for A.Y.2011-12 has already been given effect, the addition so made in the A.Y.2011-12, appears to consequential in nature. AO is directed to verify the same and pass order afresh as per law. We direct accordingly. 17. In the result, appeal filed by the assessee for bo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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