9911796707
TMI Blog2024 (10) TMI 999X X X X Extracts X X X X X X X X Extracts X X X X ..... lls to other parties. As per the facts on record, scrap vendors have received bogus bills from Mr. Manoj Kumar and submitted the same to the assessee. It is not clear whether these bills were obtained by the assessee or supplied by such scrap supplier who belongs to unorganized sector. It is also relevant to notice that assessee has purchased scraps from several parties to the extent of Rs. 24.23 crores and Assessing Officer has found discrepancy only in the case of Rs. 4,92,806/-. This is absolutely very negligent compared to total material purchased by the assessee i.e. it is only 0.2% of the total purchases. Thus we are inclined to treat the above purchases questionable but cannot be treated as non-genuine. In the result, we allow the gr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed its return of income on 18.02.2020 declaring the total income at Rs. 14,48,980/-. Subsequently, notices u/s 143(2) and 142 (1) were issued and served on the assessee. Several notices were issued u/s 142 (1) to the assessee and subsequently notice u/s 133 (6) of the Act was issued to Shri Ganpati Enterprises on 21.09.2021 to furnish the information in respect of transactions made with the assessee. No response was received from Shri Ganpati Enterprises. Considering the fact that no response from the assessee and no response to notice u/s 133 (6) from Shri Ganpati Enterprises, the Assessing Officer held that assessee could not substantiate the above bogus purchases with documentary evidences and fully relying on the information from Invest ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iers and it turned the scrap into M.S. Ingots. In the normal course of business, assessee received different batch of scrap material and finally received bills for the same. Considering the unorganized sector, the suppliers of scrap material may or may not have proper units as supplier, they may get bills from other parties and in that process, Shri Ganpati Enterprises may be one of them. He submitted that there may be some issues with the supplier in supplying with proper bills. Considering the fact of unorganized sector, the assessee has actually received scraps and manufactured it. Merely because there are certain issues with the supplier, the assessee should not be penalized. Further, he submitted that even it is a bogus purchase, certa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ized sector. It is also relevant to notice that assessee has purchased scraps from several parties to the extent of Rs. 24.23 crores and Assessing Officer has found discrepancy only in the case of Rs. 4,92,806/-. This is absolutely very negligent compared to total material purchased by the assessee i.e. it is only 0.2% of the total purchases. Considering the above facts on record, we are inclined to treat the above purchases questionable but cannot be treated as non-genuine. In the result, we allow the grounds raised by the assessee. 9. In the result, the appeal filed by the assessee for AY 2013-14 is allowed. 10. Since, the facts in other AYs i.e. 2014-15 to 2016-17 2018-19 are exactly similar, our above findings in AY 2013-14 are applicab ..... X X X X Extracts X X X X X X X X Extracts X X X X
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