2017 (9) TMI 1400
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....eferred to as 'the Revenue'), by filing the present appeals sought to set aside the impugned order dated 16.06.2014 passed by the Commissioner of Income-tax (Appeals)-1, New Delhi, for the Assessment Year 2011-12 on the grounds inter alia that :- ITA NO.4842/DEL/20114 "1. The order of Ld. CIT (A) is not correct in law and facts. 2. On the facts and circumstances of the case the Ld. CIT (A) has erred in law in deleting the addition of Rs. 7,75,00,484/- made by AO on account of bogus purchase which were capitalized by the assessee company. 3. The appellant craves leave to add, amend any/all the grounds of appeal before or during the course of hearing of the appeal." ITA NO.4843/DEL/20114 "1. The order of Ld. CIT (A) is not co....
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....ject at Greater Noida (U.P.). In case of M/s. Amrapali Smart City Developers Pvt. Ltd., Assessing Officer noticed the bogus purchases of raw material claimed as expenditure by the assessee by merely issuance of the purchase bill and effecting payment through banking channel for commission. AO, in order to verify the veracity of the transactions qua purchase of raw material claimed by the assessee, called upon Director of M/s. Ultra Home Construction Pvt. Ltd. viz. Shri Anil Sharma to verify the collateral evidences viz. bills of transport, toll naka entries, details of destination and utilization thereof. AO, in the post search enquiry, issued summons u/s 131 of the Income-tax Act, 1961 (for short 'the Act') which came back unserved with th....
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..... Ultra Home Construction Pt. Ltd. viz. Shri Anil Sharma to furnish the collateral evidences like bills of transport, toll naka entries, details of destination and utilization thereof etc. AO specifically required the assessee to furnish the following details :- (i) Purchase bills (ii) Delivery Challans (iii) Toll Tax / Naka Bill (iv) Truck No. & Freight Receipt for carriage inward etc. (v) Dharam Kata Bill / Weighing Bill along with Truck No. for goods received. 5.1 Assessee furnished the details of the companies from whom the purchases have been made. AO conducted the enquiry initially by issuing summons u/s 131 which received back unserved and then got the matter enquired into through Circle Inspector of Income-tax who has rep....
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....hich received back unserved for lack of complete address and then by getting the matter enquired into through Circle Inspector, Income-tax who has also reported that no such firms / supplier of raw material exists at the given addresses in all the cases on the ground that the identity and existence of supplier of raw material has not been proved and genuineness of transactions also remained unverifiable by returning following findings in both the aforesaid cases :- "a) The existence of the parties on the given business as well as residential addresses were not verifiable. b) The location of the premises from which business is purport to be carried is such from which operation of business alleged to be carried out is not possible. c)....
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....mstances and the orders passed by AO in AY 2011-12, it is apparently clear that though the expenditure claimed by the assessee does not have any bearing on its income / profit during AY 2011-12 as the same have been accounted for as "work-in-progress", but the same will certainly effect the income of the assessee in the next assessment year as well as at the conclusion of project. 13. In the given circumstances, we are of the considered view that though the AO has made a discreet enquiry through Inspector as to the existence of the firm from whom the assessee alleged to have purchased the raw material, but at the same time AO categorically recorded the observations in Para 4.6(e) (in ITA No.4844/Del/2014 &4845/Del/2014) and 5.6(e) (in ITA ....