9911796707
TMI Blog2023 (3) TMI 964X X X X Extracts X X X X X X X X Extracts X X X X ..... proceed to complete the assessment on the basis of material available on record. As per the assessee, as the notices issued u/s 133(6) of the Act were returned unserved, therefore, it tried to file the details, as sought, before the AO. In this regard, reference was made to the letters filed before the AO. It is further evident that without considering the details/evidence filed by the assessee, the AO treated the liability due in assessee s books for the past 3 years to be ceased and made the addition u/s 41(1) - the purchase transaction and sundry creditors were treated as bogus by the AO, and the addition was made in hands of the assessee. As various details filed by the assessee, as noted above, were not examined by the AO and the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... upon it? 2 (a) Whether on the facts and the circumstances of the case and in law, the ld.CIT(A) has erred in deleting the addition of Rs.11,90,33,194 on account of bogus purchases? (b) Whether on the facts and the circumstances of the case and in law, the ld.CIT(A) failed to appreciate that the notice issued to purchase parties u/s 133(6) were not duly replied to? (c) Whether on the facts and the circumstances of the case and in law, the ld.CIT(A) has given the relief without appreciating the fact that the assessee has not discharged the onus cast upon it? 3. (a) Whether on the facts and the circumstances of the case and in law, the ld.CIT(A) has erred in deleting the addition of Rs.22,20,12,982/- made u/s68 of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... many of the parties were returned unserved. Even in cases where notices are not returned, reply from the said parties was not received before the due date. Accordingly, in order to provide fair opportunity to the assessee, summons u/s 131 of the Act was issued and served upon the assessee requiring the assessee to attend personally and to produce the witnesses and other documents in order to prove identity, genuineness, and creditworthiness of the trade creditors, purchase parties and sundry creditors. However, the assessee did not produce any of the parties on the appointed date i.e. on 28/12/2016 and instead, the assessee filed a letter referring to the submission earlier made. The assessee further sought time of two weeks to produce the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... its through the inspector were not conducted to find out the actual reasons for non-compliance of notice u/s 133(6) by any particular party. The learned CIT(A) also held that in the facts of the present case, section 41(1) of the Act is not applicable due to debt getting time-barred by limitation. As regards the purchases, the learned CIT(A) held that the parties indeed replied to the AO and thus the identity and creditworthiness of the parties and the genuineness of the transaction cannot be doubted. As regards the sundry creditors, the learned CIT(A) held that confirmation-ledger statements of the parties were submitted before the AO and thus the assessee s prime onus was discharged. Accordingly, it was held that the addition u/s 68 as un ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... yables and very low net profit, the details of the parties with which the assessee has transactions of purchases and trade payables were sought. The AO in order to verify the genuineness of the trade payables and purchases sought information from the parties and issued notices u/s 133(6) of the Act. However, it is undisputed that many of these notices were returned unserved. It is also evident from the record that the AO issued summons u/s 131 of the Act to the assessee to attend personally and produced the witnesses and other documents in order to discharge the onus of proving the identity and creditworthiness of the parties and genuineness of the transactions. It is further evident from the record that the assessee could not produce any o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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