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TMI Blog2024 (6) TMI 426X X X X Extracts X X X X X X X X Extracts X X X X ..... uments and took all the necessary steps as could have been taken by the victim of the GST fraud. Undeniably purchases relating to M/s. Gulathi Enterprises amounts of Rs. 5.37 crore, while the sales are just Rs. 3.95 crore, and even if it is assume to be treated as transaction done by the assessee, no addition is warranted as the sales are anyway lesser than the purchases under the relevant GST number - assessee has also satisfactorily proved before lower authorities that the GST number assigned to it is different from the GST number of M/s. Gulathi Enterpris - no infirmity in the impugned order passed by the learned CIT(A) deleting the addition of sales of M/s. Gulathi Enterprises u/s 69A of the Act in the hands of the assessee. As a result, the ground no. 1, raised in Revenue appeal is dismissed. Addition on account of bogus purchases - AO has relied upon the statement recorded during the search and survey action conducted in the year 2017 2018 - HELD THAT:- Undisputedly, statements considered by the AO were recorded on dates 13/07/2017, 14/07/2017, 19/07/2017 and 11/08/2018. Thus, it is evident that none of these statements pertain to the year under consideration. Also during the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee filed its return of income on 02/03/2022 declaring a total income of Rs. 18,17,080/-. The return filed by the assessee was selected for complete scrutiny through CASS and statutory notices u/s 143(2) as well as section 142(1) of the Act were issued and served upon the assessee. During the assessment proceedings, it was observed that an amount of Rs. 3,95,15,327/- has been shown as sales in the GST return of the assessee. Accordingly, the assessee was asked to show cause as to why the sales of Rs. 3.95 crore should not be treated as part of the assessee s sales. In response thereto, the assessee submitted that M/s. Gulathi Enterprises had fraudulently applied the GST number under the PAN of the assessee. It was further submitted that the assessee has filed complaint with Police and Department of GST. Thus, it was submitted that the sales of Rs. 3.95 crore pertaining to M/s. Gulathi Enterprises have wrongly been included in the GST return of the assessee. The assessee also furnished copy of cancelled GST number of M/s. Gulathi Enterprises during the assessment proceedings. In order to ascertain the genuineness of the assessee s claim, the Assessing Officer ( AO ) issued lett ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... applied GST number under PAN of the assessee, and accordingly, the turnover of M/s. Gulathi Enterprises is getting reflecting in its GST return. It is evident from the record that in this regard the assessee had filed complaint with Police Department as well as the Department of GST. It is further evident from the record that the GST Department has even cancelled the GST number of M/s. Gulathi Enterprises. However, since the AO did not receive any response from the Department of GST to its letter seeking information in respect of transaction done through GST number issued in the name of M/s. Gulathi Enterprises, the AO proceeded to make the addition of the entire sales of Rs. 3.95 crore in the hands of the assessee. From the perusal of the record, we find that the assessee furnished the letter as well as police complaint during the assessment proceedings and also furnished the cancellation of GST certificate of M/s. Gulathi Enterprises. Further, from the copy of the letter of the AO to the Commissioner of CGST and Central Excise, forming part of the paper book from pages 156-157, we find that the same is dated 08/12/2022 and the assessment order was passed on 28/12/2022. Thus, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l from whom M/s. Viraj Profile Ltd had been alleged to have made bogus purchases was also covered under the survey action u/s 133A of the Act. However, the search took place on 13/07/2017 and the assessee has made purchases from M/s. Ankit International during in the financial year 2020-21, which is around 3 4 years, after the date of search, and therefore, the findings of the search are not at all relevant to the purchases made from M/s. Ankit International. The assessee further submitted that he is a trader in steel and whatever purchases were made from M/s. Ankit International have been sold to various parties, and the unsold stock has been disclosed as a part of closing stock of Rs. 1,93,40,000/-, while the total purchases amount to Rs. 4,55,36,000/-. During the assessment proceedings, the assessee also furnished ledger copy of M/s. Ankit International in the books of GSP International and also furnished the invoice of purchases as well as the bank statement showing payment made to M/s. Ankit International. The assessee further submitted that Shri Pranav Jain, proprietary concern of M/s. Ankit International, duly responded to the notices issued u/s 133(6) of the Act as well as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e names of various parties which are not genuine purchases and were accommodation entries. Further, survey action u/s 133A of the Act was carried out simultaneously on the assessee s proprietor firm M/s. GSP International, M/s. Ankit International and M/s. SPA Heights Pvt. Ltd. During the aforesaid search and survey action, the statement of directors/proprietors of these entities were recorded, wherein some of them stated that their entities were engaged in providing accommodation entries on account of providing bogus sales details to Viraj Group on commission basis. Further, the Sr. employees of Viraj Group had accepted that the purchases from these entities are accommodation entries made in books of the accounts of M/s. Viraj Profiles Ltd and no material was received against these entries. It is further evident from the record that the AO on the basis of the aforesaid search action and statement recorded came to the conclusion that the purchases shown by the assessee from M/s. Ankit International during the year under consideration are bogus. Undisputedly, it is evident from the record that the statements considered by the AO, as noted from pages 5 14 of the assessment order, wer ..... X X X X Extracts X X X X X X X X Extracts X X X X
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