9911796707
TMI Blog2020 (1) TMI 1442X X X X Extracts X X X X X X X X Extracts X X X X ..... avour of M/s. Vee Gee Industrial Enterprises and said entity was not found to carry out any business nor any statutory payment like VAT/Excise Duty, etc. was paid which was statutory requirement for a person or entity carrying out such a trade - there is no freight payment also. Since in the inquiry, specific cheque number and account was found which is tallying with the assessee s bank account then there is a prima facie reason to believe that transaction is not genuine and such a material is sufficient to clothe the Assessing Officer to acquire jurisdiction to reopen the assessment. AO at the stage of recording the reasons and issuance of notice need not need to establish fact. Thus, the finding of the Ld. CIT (A) upholding the validity o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s.143(3)/147 for the Assessment Year 2009-10. In various grounds of appeal, the assessee has challenged the validity of reopening u/s.147 and addition of ₹ 8 lacs on account of alleged bogus bill in the name of M/s. Vee Gee Industrial Enterprises. 2. The facts in brief are that the assessee has filed its return of income on 15.09.2009 declaring income of ₹ 51,46,341/-. The said return was duly processed u/s. 143(1). Later on, information was received from the office of ADIT (Inv.)-II, Faridabad dated 23.03.2016 along with bank statement of the assessee wherein assessee-company had issued a cheque in favour of M/s. Vee Gee Industrial Enterprises. As per the said information, M/s. Vee Gee Industrial Enterprises was mainly engag ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rprises has mainly been large value credits from business individuals in other banks followed by immediate cash withdrawals. On filed enquiry, it is noticed that no such business is carried out by M/s Vee Gee Industrial Enterprises. Perusal of bank a/c statement also reveals that there is no payment of any statutory nature like payment of VAT / Excise duty etc. M/s Vee Gee Industrial Enterprises is into trading of iron and steel as per KYC, but no freight payment can be observed from the bank records. Prima facie, no payment of administrative nature can also be seen from the perusal of bank records. From this entire pattern it appears to be a case of bogus billing. Details of cheque / RTGS issued in favour of M/s. Vee Gee Industrial Enter ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... de separate order dated 23.11.2016. Thereafter, the Assessing Officer issued summons u/s.131 to the proprietor of M/s. Vee Gee Industrial Enterprises. However, no one appeared nor any reply was filed. The assessee was therefore asked to establish the genuineness of the transaction. However, the assessee reiterated that it has filed copy of purchase bills, copy of computation of total income, audited final accounts, etc. However, ld. Assessing Officer based on material on record and inquiry carried out by the Investigation Wing and failure to comply with the summons issued u/s.131, came to the conclusion that purchase is bogus and made the addition of ₹ 8 lacs. 4. Ld. CIT(A), first of all, dismissed the assessee s objection for v ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 09.2017. ii) Delhi High Court in the case of PCIT vs. G G Pharma India Ltd., order dated 08.10.2015 iii) Delhi High Court in the case of PCIT vs. Meenakshi Overseas Pvt. Ltd., order dated 26.05.2017. iv) Delhi High Court in the case of PCIT vs. RMG Polyvinyl Ltd., order dated 07.07.2017. 7. On merits, he submitted that assessee has produced the invoices, purchase bills, details of VAT and TIN number of the supplier, the source of these purchases are from books. Once corresponding sale have been accepted, therefore, no addition on account of bogus purchases can be made. Alternatively, he submitted that entire purchases cannot be made and GP rate can be applied here in the case of the assessee @ 6%. 8. On the other han ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urchases, but that remained uncomplied with nor assessee could produce the party. However, on the other hand, the sources of purchase have gone from the books of the assessee and there is a corresponding sale. In such a situation at the most even if assessee has made bogus purchases through cheque from the sources disclosed in the books of account and thereafter has taken accommodation entry and has received the cash back, then the same goods must have purchased from the grey market in cash, Since sales and purchase quantity wise details in the trading account has not been disturbed then at the most it could be a case of suppression of gross profit. Under these circumstances, we hold that addition on account of enhancement GP on the said pu ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
