2010 (8) TMI 32

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....A of Income Tax Act, 1961 (for brevity "Act, 1961") challenging the order dated 27th November, 2009 passed by the Income Tax Appellate Tribunal (in short "ITAT") in ITA Nos. 2233/Del/2008 and 2444/Del/2008 by virtue of which appeals filed by the assessee and Revenue were disposed of with regard to the Assessment Year 2005-2006. 2. Ms. Suruchii Aggarwal, learned counsel for Revenue submitted that....

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.... and calling for evidence as well as survey, search, seizure and requisition of books of accounts. 4. The ITAT in its impugned order has also pointed out that the excess in purchase price of goods purchased from Mr. Sanjay Kumar Garg is only about 1.5% and further inability of assessee to produce the supplier could not lead to the inference that the supplier was bogus. The relevant observations i....

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....e of over invoicing or any material has been seized that purchases by the assessee is bogus. Inability of the assessee to produce those suppliers cannot alone lead to the inference that these purchase are bogus. In this regard reference is made to Hon'ble Apex Court decision in the case of Anis Ahmad & Sons Vs. EIT reported in 297 ITR 441, wherein as per the fact of the case where AO issued summon....

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.... not the case that there is decline in the gross profit rate as compared the previous year. No case has also been made out that the profit earned on these purchase was not up the mark. Under the circumstances, in our opinion the addition on account of substitution of purchase price by the revenue is not justified. 6.4 In this regard, we draw support from the decision of the Hon'ble Apex Court in....