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TMI Blog2018 (6) TMI 740X X X X Extracts X X X X X X X X Extracts X X X X ..... e invoices were raised to Government of Bihar on the last day of FY 2009-10 - but in the subsequent year neither purchase has been booked nor sale has been booked - ledgers of sundry creditors along with purchase details for F.Y 2009-10 is filed and placed on record and from the documentary evidence, we note that from the list of sundry creditors as on 31.03.2011 i.e. the subsequent year, the above two companies do not figure in the list. Same is the case with the list of Sundry Debtor as on 31.01.2011 wherein the two companies do not figure - while looking from another angle, we do not find that there is any loss for the Revenue because in any case the purchases and sales in respect of computers have to be allowed in the subsequent Assessm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . The assessing officer noted that the assessee company had debited total purchases to the tune of ₹ 3,00,15,868/- in the Profit Loss account, in which purchase were shown in respect of M/s. lRlS Computers Ltd. at ₹ 2,38,68,000/- and in respect of M/s. lndia Cyber Learning Pvt. Ltd. at ₹ 37,50,000/-. The assessing officer issued notices u/s. 133(6) of the Act to these parties to verify the said purchases made by the assessee company. Both the parties viz. M/s. lRlS Computers Ltd. vide its reply dated 18.03.2013, and M/s. lndia Cyber Learning (P) Ltd. vide its reply dated 01.02.2013, denied to have any transactions during the F.Y.2009-10 relevant to the A.Y. 2010-11 with the assessee company. During the assessment proceedi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... thout purchases there could not have been any sales. The AO has accepted the sale figures so, therefore, question of rejecting the purchases simply because he did not receive any information, when notices were issued under section 133(6) of the Act, from parties, cannot be the sole reason to make the addition. It is to be kept in mind that the amount of sales by itself cannot represent the income of the assessee. The sale only represented the price received by the seller of the goods for the acquisition of which it has already incurred the cost. It is the realization of excess over the cost incurred that only forms part of the profit included in the consideration of sales. lt is not the case of the Assessing Officer that investment by way o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to such purchases were also recorded in the books of the assessee during the relevant assessment year which fact the AO has admitted after perusal of the recorded books of account and documents evidences. 7. As stated earlier, we note that all the evidences and books of account were produced before the AO for his further verification during remand stage, with regard to the purchase made from the two parties i.e. M/s IRIS Computers Ltd M/s lndia Cyber Learning (P) Ltd. It was submitted before us that the invoices were raised to Government of Bihar on the last day of FY 2009-10 as per their instruction. lt was for this reason that purchases were booked according to the purchase order issued to the companies who were treated as Sundry C ..... X X X X Extracts X X X X X X X X Extracts X X X X
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