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TMI Blog2016 (10) TMI 1343X X X X Extracts X X X X X X X X Extracts X X X X ..... hence we do not find any illegality or infirmity in the order of Ld CIT(A) - Decided in favour of assessee. - ITA No. 7287/Mum/2014 - - - Dated:- 7-10-2016 - SHRI B.R. BASKARAN, ACCOUNTANT MEMBER AND SHRI PAWAN SINGH, JUDICIAL MEMBER For the Appellant : Shri Nitin Waghmode ( Sr. DR) For the Respondent : Shri Satish R. Mody (AR) ORDER PER PAWAN SINGH, JM: 1. The present appeal u/s. 253 of the Income-tax Act is directed by the Revenue against the order of CIT(A)-34,Mumbai, dated 29.09.2014 for AY-2010-11. 2. The brief facts of the case are that the assessee is engaged in the business of marine contract, filed return of income for relevant AY on 15.10.2010 declaring total income of ₹ 57,11,308/-. The retu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es incurred on purchase were treated as unexplained expenditure u/s 69C of the Act. The Ld. CIT(A) deleted the entire addition despite the fact that genuineness of the parties was not proved. Ld. DR prayed for setting aside the order of the CIT(A) and to restore the order of AO. On the other hand the Ld. AR of the assessee argued that full details of purchases were submitted during the course of assessment. The assessee made the payment of ₹ 27,71,059/- through banking transaction. And the balance was shown as outstanding payable the assessee has explained the source of expenditure for the entire amount. The assessee is engaged in the business of repairing and maintenance of Naval and other Ships. The assessee is required to raw-mater ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... idered the rival contentions of the parties and perused the material available on record. The AO while making the assessment observed that assessee had affected the purchases from following parties which were identified by the Sales Tax Department as under: Sr. No. Name of the party Amount so called purchases made (Rs.) 1 V3 Enterprises 9,48,886 2 Shri Sai Trading Co. 9,33,814 3 Rohit Enterprises (Material) 9,36,287 4 Niddhish Impex Pvt. Ltd. 9,42,568 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sdictional High Court in Nikunj Eximp Enterprises (P) Ltd. (supra), Kalathil, Tristar Jewellery held as under: In the case of Nikunj Eximp(supra) the Hon'ble Bombay High Court has held if sales were not doubted by the AO and copies of bank statement showing entries of payment through account payee cheques to the suppliers, copies of invoices for purchases and a stock statement, i.e. stock reconciliation statement are filed purchased could not be rejected Further the Co-ordinate Bench of ITAT, Mumbai in case of ACIT vs. Tarla R. Shah- ITA No. 5295/M/2013 dt. 02.02.2016, relying upon the decision of Shri Ramesh Kumar Co.(supra) vs. ACIT in ITA No. 2959/M/2014 and Rajeev 5.1 Now the issue before us is whether the aforesaid ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cash trail. Secondly, proof of movement of goods is not in doubt. Therefore, considering the peculiar facts and circumstances of the case under appeal, we are of the opinion that the order of the FAA does not suffer from any legal infirmity and there are not sufficient evidence on file to endorse the view taken by the AO. So, confirming the order of the FAA, we decide ground no.1 against the AO. Thus, keeping in view the decision of the coordinate bench of this Tribunal, where the AO has not disputed the use of material nor disputed the stock of the assessee, hence we do not find any illegality or infirmity in the order of Ld CIT(A) In the result, appeal filed by the Revenue is dismissed. Order pronounced in the open court on 7th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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