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TMI Blog2020 (8) TMI 760X X X X Extracts X X X X X X X X Extracts X X X X ..... ND MS SUCHITRA KAMBLE, JUDICIAL MEMBER Appellant by : Ms. Sunita Singh, CIT(DR) Sh. M. Barnwal, Sr. DR Respondent by : Sh. Salil Aggarwal, Adv ORDER PER SUCHITRA KAMBLE, JM These two appeals are filed by the Revenue against orders dated 4/11/2015 29/09/2015 passed by CIT (A)- XXVI, New Delhi for assessment year 2012-13 2011-12 respectively. 2. The grounds of appeal are as under:- I.T.A. No. 6448/DEL/2015(A.Y. 2011-12) 1. The CIT(A) erred in facts and in law in deleting the addition of ₹ 7,17,95,500 made by the AO on account of unexplained expenditure in complete disregard of the system of accounting and the applicable accounting standards as it is mandatorily required to follow such system of accounting and the accounting standards. 2. The CIT(A) erred in facts and in law in allowing the appeal of the assessee without appreciating the fact that the entities from which purchases have shown to be made are bogus and nonexistent. 3. The CIT(A), being a fact finding authority, has further erred in facts and in law in accepting the contentions of the assessee without getting the facts verified regarding the existence of M/s Ga ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2011-12 was filed. In response to statutory notice on 11/1/2013 Chartered Accountant/Authorized Representative of the assessee company attended the assessment proceedings. During the course of search from the residence of Shri Harmeet Singh Oberoi, certain documents were found and seized which are described as Annexure-A1. On the perusal of bills found and seized, the Assessing Officer observed that the TMT Bars are claimed to be purchase from M/s Ganesh Traders and M/s Trade Link. Inspectors were sent to make enquiries about the genuineness of the purchase of TMT Bar as the said documents were purchased bills for purchase of TMT Bars issued by M/s Ganesh Traders and M/s Trade Link. The said documents also include the Kanta receipts as well as transportation documentation. The Investigation Wing caused enquires through the Inspectors to verify the genuineness of purchase of TMT Bars. It was reported with respect to M/s Ganesh Traders that the shop was closed having Sign Board of M/s Ganesh Traders. It was reported by the neighbours that the shop was closed for the last six months and was rarely visited. It was also highlighted that no other shop was open on that day in Tyagi Marke ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Ltd. in ITA No. 525/2014 order dated 11.03.2015. 6. The Ld. AR relied upon the order of the CIT(A). The Ld. AR further submitted that all the documentary evidence about the purchases were before the Assessing Officer but the same was not taken into account. All the documents are genuine and verifiable from the bank statements of the assessee as all the payment was made through banking channel only. The fact that the said documents were seized and was not in the present Assessment Year i.e. 2011-12 is justified as quantification has to be proper. The Ld. AR submitted that in subsequent Assessment Year 2012-13, the said purchases were reflected. Thus, the CIT(A) was right in allowing the appeal. 7. We have heard both the parties and perused the material available on record. The CIT(A) for Assessment Year 2011-12 held as under:- 6. I have considered the facts of the case, the basis of addition made by the AO and the arguments of the AR, during the assessment as well as reassessment proceedings. It is seen that same addition on account of alleged unexplained purchases/expenditure u/s 69C has been made by the AO for AY 11-12 and AY 12-13. It has been the contention of the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... suggest that material has been delivered at site. (page no 14 of Assessment order) 8. It is also a matter of fact that payment for impugned purchases had been made by account payee cheques to the sellers namely, M/s Ganesh Traders and M/s Trade Link. The inquiries! conducted by the investigation wing show that the impugned sellers did not seem to have any regular and running business as shop of M/s Ganesh Traders was found to be closed and M/s Trade Link premises could not be located at all. In the situation when the goods allegedly purchased have been admittedly delivered to the purchaser that is the appellant and payment made thereof through banking channels, the non-availability/tracability of the sellers cannot lead to the conclusion that impugned purchases had not been made at all. When the goods in question have been received at site, obviously, there would be a supplier. The onus on the appellant with reference to the purchases debited in P L a/c is to ensure that the payment in question is made for goods purchased and the same has been established as detailed above. The AO has neither doubted the receipt of goods by the appellant nor the payment made for the same thr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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