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TMI Blog2024 (8) TMI 274X X X X Extracts X X X X X X X X Extracts X X X X ..... of aforesaid information, to disprove the genuineness of the transaction between the assessee and M/s. Kasturi Commodities Pvt. Ltd., which is continuing from the preceding year. Therefore, no infirmity in the impugned order passed by the CIT(A) deleting the addition made by the AO. As a result, the sole ground raised by the Revenue is dismissed. - SHRI AMARJIT SINGH, ACCOUNTANT MEMBER AND SHRI SANDEEP SINGH KARHAIL, JUDICIAL MEMBER For the Appellant : Shri Anil Thakrar For the Respondent : Shri Biswanath Das ORDER PER SANDEEP SINGH KARHAIL, J.M. The present appeal has been filed by the Revenue challenging the impugned order dated 06.09.2023, passed u/s 250 of the Income Tax Act, 1961 ( the Act ) by the learned Commissioner of Income Tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Ltd does not have any actual business or financial creditworthiness and is engaged in providing accommodation entry in return of commission which proves that the transaction reflected in the assessee s account is a sham transaction. In response to the show cause notice issued during the assessment proceedings, the assessee submitted that it had made purchased transactions with M/s. Kasturi Commodities Pvt. Ltd and has not received any amount of Rs. 29,82,60,232/- but has rather paid for the purchases made from M/s. Kasturi Commodities Pvt. Ltd., during the year and for opening balance. In this regard, the assessee also furnished confirmation of accounts from M/s. Kasturi Commodities Pvt. Ltd and a copy of the bank statements. The Assessing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arned Departmental Representative vehemently relied upon the order passed by the AO and submitted that no document has been furnished by the assessee to prove the purchase from M/s. Kasturi Commodities Pvt. Ltd. 7. On the other hand, the learned Authorised Representative ( learned AR ) by referring to the financial statement of M/s. Kasturi Commodities Pvt. Ltd submitted that it has reserves and surplus of Rs. 7.67 cr and a turnover of 238.38 cr during the relevant financial year. The learned AR further referred to the ledger confirmation of M/s. Kasturi Commodities Pvt. Ltd to prove the purchase transaction with the assessee. 8. We have considered the submissions of both sides and perused the material available on record. In the present ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the assessee is not only for the purchases made during the year but also the past purchases made from M/s. Kasturi Commodities Pvt. Ltd. Further, contrary to the claim of the AO that M/s. Kasturi Commodities Pvt. Ltd does not have any actual business or financial creditworthiness, we find from the audited financial statement of M/s. Kasturi Commodities Pvt. Ltd for the year ending 31.03.2016, forming part of the paper book pages 4-13, that it has a total turnover of Rs. 238.38 cr and surplus of Rs. 7.67 cr during the year under consideration. Further, we find that it has an inventory of Rs. 112.11 cr as on 31.03.2016 as compared to 70.13 cr as on 31.03.2016. Further, from the copy of the ITR acknowledgement of M/s. Kasturi Commodities Pv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... modities Pvt. Ltd nor has highlighted the part wherein it is stated that the assessee is the beneficiary of bogus purchases. It is pertinent to note that in the present case, the identity of M/s. Kasturi Commodities Pvt. Ltd has not been doubted by the Revenue and only the genuineness and creditworthiness of the purchases have been disputed by the Revenue. Since in the present case, the assessee has made the purchases from M/s. Kasturi Commodities Pvt. Ltd, therefore, the examination of the creditworthiness of M/s. Kasturi Commodities Pvt. Ltd is of no relevance. On the other hand, the assessee has furnished sufficient documents to prove its financial creditworthiness which has not been disputed by the Revenue. In the present case, apart fr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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