TaxTMI 
TaxTMI 
2019 (11) TMI 977
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.... addition of Rs. 93,44,424/- made by AO on account of unverifiable purchases without appreciating the fact that the assessee company could not furnish the bills, vouchers and addresses of the persons from whom purchases were made. 2. That the Ld. CIT(A)-II, Agra has erred in law and on facts in deleting the addition of Rs. 93,44,424/- made by AO on account of unverifiable purchases by relying upon the decision of Hon'ble Calcutta High court in the case of CIT Vs. CPL Tannery reported as 2009 318 ITR 179 (Cal) without appreciating the fact that the decision of Hon'ble Calcutta High Court pertains to the disallowance u/s 40A(3) of the Act. 3. That the Ld.CIT(A)-II, Agra has erred in law and on facts in deleting the a....
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....er, it is observed that in the decision of Hon'ble Calcutta High Court as rendered in the case of CIT vs. CPL Tannery reported as (2009) 318 ITR 179 (cal), wherein the Hon'ble High Court has held as under- "The contention of the assessee that he purchased goods from supplies who are produces of hides and skin, has not been refuted either by the AO or by the CIT(A). The second contention of the assessee that owing to business expediency, obligation and exigency, the assessee had to make cash payment for purchase of goods so essential for carrying on of his business, was also not disputed by the AO. The genuinity of transactions, rate of gross profit or the fact that the bonafide of the assessee that payments are made to produces....
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....ouchers, there is no reason making disallowance 20% of purchases, as no pinpointing adverse finding was given by the AO, thus the disallowance so made remains to be in realm of assumptions and guess work. As observed, the case of the appellant is strengthened from the AO's own action that in the subsequent year no such disallowance has been made by him, particularly when there was no change in the facts of the case. Therefore, the disallowance made by the AO is without any basis and deserves to be deleted. Hence the disallowance of Rs. 93,44,424/- is deleted. As a result, this ground of assessee is allowed." 6. The ld. DR placed strong reliance on the assessment order. He contended that the ld. CIT(A) has deleted the addition of Rs. 93,4....
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....peal (APB 3 to 4); tax audit report in Form 3CA with Form 3CD (APB page 5 to 13) and audited balance sheet in P & L account annexed with complete schedule for the assessment year 2011-12 page 14 to 28.The counsel for the assessee further contended that the sells effected consequent to purchase made during the year under consideration and that the closing stock was so remained has been accepted by the AO. Under these circumstances the question of doubted the purchased would not arise. Accordingly, he urged for acceptance of the book results in view of Hon'ble Calcutta High Court, in the case of 'CIT vs. CPL Tannery' (supra). 8. The ld. DR placed reliance on the assessment order. 9. Heard the rival contentions, perused the record and th....