TaxTMI 
TaxTMI 
2015 (2) TMI 109
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....addition of Rs. 17,35,064/- on account of disallowance of consumable account and Rs. 4,80,125/- on account of depreciation of machinery. 3. That appellant requests for leave to add or amend the ground of appeal before the appeal is heard and disposed off." 3. The Revenue has raised the following grounds of appeal: "1. That on the facts and in the circumstances of the case and in law, the Ld. CIT(A) has erred in deleting the addition amounting to Rs. 7,76,915/- (correct figure Rs. 7,62,206/-) out of total addition of Rs. 29,92,485/- made by proving the purchases claimed to have been made from M/s Krishna Hardware & Mill Store and M/s Rajiv Electric Trading Co. to be bogus purchases and hence sham transactions. The Ld. CIT(A) has not appreciated that enough material has been brought on record to disprove the claim of the assessee as regards purchases made from these concerns. 2. That, on the facts and in the circumstances of the case and in law, the Ld. CIT(A) has erred in deleting the addition amounting to Rs. 1,49,429/- made on account of late payment of ESI and EPF as the decision relied upon by him is not applicable to the facts of the case. 3. That, it is prayed that the or....
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....ponse is "please check the No. you have dialed." The mobile No.8140-01340 given on the letter head is in the name of Shri Dalbir Singh, Jagraon who has confirmed that he has nothing to do with M/s Rajiv Elect." "Dated:- 02.02.2005 Regarding:- Service of notice u/s 133(6) on M/s Krishna Hardware & Mill Store, Shiv Market, G.T. Road. Byepass, Jalandhar. As directed I went to effect the service of above said notice today. Local enquiries have revealed that there is no such concern in the Shiv Market, G.T. Road, Byepass, Jalandhar. Regarding phone No.2611509 given on its letter head, enquiries have revealed that the above telephone is in the name of M/s Baba Deep Singh Inds., Indl. Estate, Jal. Statement of Sh Gurjivan Singh, partner of M/s Baba Deep Singh Inds. in this regard is enclosed herewith for your kind perusal. He has also denied having any knowledge about M/s Krishna Hardware & Mill Store." 7. The assessee furnished explanation which is reproduced for the sake of convenience as under :- "....Sir, during the course of assessment proceedings, your goodself asked to file copy of account of M/s Rajiv Electrical Trading Co and M/s Krishna Hardware & Machinery Co. which were f....
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....ame of a petty employee of the group. The account was duly introduced by Shri Ashok Kumar, one of the partners. The account was opened in the same bank in which the firm was having its account. (iv) Bills in the name of 'Krishna Hardware & Mill Store' were got printed and bogus PST/CST No., phone No., address etc. were mentioned on the same. (v) Purchases were shown on these bills. Actually, no such purchases were ever made and no such goods were ever consumed in the factory. (vi) As on 27.08.2001, there is a credit balance of Rs. 15.26 lacs in the name of this concern. Shri Rakesh Chadha had no capacity to give such huge credit and had no good-will or credit-worthiness himself to obtain goods on credit form others. (vii) Shri Rakesh Chadha has miserably failed to produce any evidence regarding goods purchased or even the fact that he had ever done such a business. He has himself admitted various details on the bills as being bogus. (viii) Signatures on the bills are not of this person. Withdrawals from the bank have also not been made by this person. In fact, he may not even have been aware that the account was being used in this manner. (ix) The partners of the firm used th....
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....The ld. Counsel for the assessee Shri Ravish Sood, Advocate relied upon the submissions made before the A.O. and the ld. CIT(A) and argued that the purchases made from the said concerns are genuine. The assessee has submitted copy of accounts duly confirmed from the said parties i.e. M/s Rajiv Electric Trading Co. and M/s. Krishna Hardware & Mill Store. The said parties having confirmed the ledger account of the assessee and, therefore, no addition should have been made by the A.O. and the addition sustained by the CIT(A) be directed to be deleted was accordingly prayed. 13. Ld. Departmental Representative Shri Tarsem Lal, on the other hand, argued that the alleged parties M/s Rajiv Electric Trading Co., Jalandhar and M/s. Krishna Hardware & Mill Store, Jalandhar are fictitious parties and transactions are sham transactions. Since the said parties were not produced by the assessee before the A.O. on one hand and as per the statements of the said parties, they are not maintaining any books of account and all the payments have been declared to have been made in cash. No evidence has been placed on record by the assessee that the goods have been purchased from the said concerns. The ....