Appellate Tribunal directs Assessing Officer to delete additions, allows appeal against Commissioner of Income Tax.

The Appellate Tribunal directed the Assessing Officer to delete the additions made, allowing the appeal filed by the assessee against the order of the Learned Commissioner of Income Tax (Appeals) for the A.Y. 2011-12.

---

---

Issues involved:
The appeal filed by the assessee against the order of the Learned Commissioner of Income Tax (Appeals) for the A.Y. 2011-12.

Details of the case:
The return of income was filed by the assessee declaring total income. The case was reopened due to information received regarding bogus purchases. Notices were issued to the assessee based on the information received. The Assessing Officer requested various documents to verify the genuineness of the purchases. The assessee submitted explanations and documents in response to the notices.

The Assessing Officer rejected the submissions of the assessee, concluding that the purchases were bogus. The AO stated that the burden of proof lay on the assessee to establish the genuineness of the transactions. The AO found discrepancies in the explanations provided by the assessee and initiated penalty proceedings.

The assessee appealed before the Ld. CIT(A), who dismissed the appeal. The assessee then appealed before the Appellate Tribunal, challenging the addition made under Section 69C and the disallowance of depreciation. The assessee argued that the transaction was genuine and provided evidence to support their claim.

After considering the submissions, the Tribunal observed that the case was reopened based on information from the Sales Tax Department declaring the supplier as non-genuine. The Tribunal held that the Assessing Officer cannot disallow the total value of the asset and depreciation simultaneously. Referring to a similar case, the Tribunal directed the AO to delete the additions made, thereby allowing the appeal filed by the assessee.

Conclusion:
The Appellate Tribunal directed the Assessing Officer to delete the additions made, allowing the appeal filed by the assessee against the order of the Ld. CIT(A) for the A.Y. 2011-12.

---