TaxTMI 
TaxTMI 
2018 (5) TMI 254
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....brought to our notice by the learned counsel for the assessee that the impugned addition was based on a survey conducted in the business premise of the assessee on 26.03.2010 which was for the preceding assessment year i.e. 2010-11. During the survey, it was found that in respect of purchases and job work from certain parties, bills amount was not mentioned on the bills and was later self-entered / mentioned after some days. In the A.Y. 2010-11 (preceding assessment year), the A.O. classified the same as blank bills. Thereafter, the A.O. listed out parties from whom such purchases ( blank bills) were made by the assessee has been found to be that of 11 parties. The A.O. asked the assessee to produce 3 parties namely National Enterprises, Pr....
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....he survey team had taken out individual item wise stock of all godowns of the assesse which were in conformity with the stock register. The inventory as taken by the survey team showed that the same articles as supplied under the questioned bills were in the stock and the rate of individual article as mentioned in those bills were also similar with the inventory rate. These facts go to prove that the purchases were genuine although the final complete bills were not submitted by the said suppliers due to circumstances stated above. We find that the assessee had also duly explained the reasons for reduction in gross profit rate by way of reduction in export turnover by way of lesser sale prices and huge fluctuations in export proceeds realiza....
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....he business address and also as per the addresses as per bank accounts as called by the ld AO from the respective banks of the parties. The ld AO after enquiry concluded that the parties were carrying on fabrication work as given by the assessee and not supplied any finished goods to the assessee but received payments by cheques from the assessee. In this regard, the assessee sought for cross examination of such parties and the same was granted. The following facts emanated out of such cross examination of the parties :- i) The ld AO had called the bank statement from the respective bankers of the parties and verified the same in details and found that all the account payee cheques issued by the assessee for purchase of finished gl....
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....antity OK' . In many occasion, all the goods as supplied are not accepted as some of the goods are rejected. Hence the actual quantity as accepted in the godown mentioned on the challans by the suppliers and the same are recorded in the daily stock register. Only after the challans are accepted, the supplier raised their bills. vi) It was stated that nowhere in the oath during the course of cross-examination, the statement as given in the parties was in English. It was all through given in Bengali and subsequently translated and written in English by one departmental staff under the guidance of the ld AO. The Authorised Representative in no circumstances intervened or guided the parties to state incorrect statement as alleged by th....
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....ases are considered as ingenuine, the same are to be removed from purchases, then the same would result in negative stocks for the assessee, which is not the case of the revenue at all. All these purchases are duly backed by corresponding exports. On the contrary, we find that the survey team only found excess stock at the time of survey. Hence there is no question of disbelieving the purchases made from National Enterprises by the assessee. 7.5. In view of aforesaid facts and our findings , we hold that the ld CITA had rightly deleted the addition on account of ingenuine purchases in the sum of Rs. 1,67,13,174/- from three parties. Accordingly we do not find any infirmity in the said order of the ld CITA. Accordingly, the grounds ....