TaxTMI 
TaxTMI 
2019 (12) TMI 313
X X X X Extracts X X X X
X X X X Extracts X X X X
....ologies Pvt. Ltd. (hereinafter referred to as the 'assessee') by filing the present appeals sought to set aside the impugned orders all dated 31.10.2013 passed by the Commissioner of Income-tax (Appeals)-XXXI, New Delhi qua the assessment years 2006,07, 2007-08, 2008-09, 2009-10 & 2010-11 on the grounds inter alia that:- "AY 2006-07 That on the facts & circumstances of the case the learned AO and the CIT (A) erred in : (1) Disallowance of Rs. 53,89,420/- in AY 2006-07 on account of bogus purchases. AY 2007-08 That on the facts and circumstances of the case the learned ITO and the CIT(A) erred in : 1) Disallowing purchases amounting to Rs. 50,39,398 on account of Bogus purchases. ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ry for adjudication of the issue at hand in all the aforesaid appeals are : Assessing Officer (AO) noticed that the assessee company has made purchases of Rs. 52,89,420/- and Rs. 50,39,398/- in AYs 2006-07 & 2007-08 respectively from M/s. Jay Enn Infotech Ltd., 105-A/2, Saraswati House, 27 Nehru Place, New Delhi. AO also noticed that the assessee company being group company of Tulip group on whose premises search was conducted and Shri H.S. Bedi, CMD of the company admitted that the group companies have been involved in making bogus purchases from some of the entities. AO declining the contentions raised by the assessee proceeded to conclude that since M/s. Jay Enn Infotech Pvt. Ltd. is not carrying out substantial business activities at th....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ied upon and orders passed by the revenue authorities below in the light of the facts and circumstances of the case. GROUND NO.1 OF AYs 2006-07 & 2007-08 7. When we examine the impugned order passed by the ld. CIT (A) particularly para 4.2.5 and 4.2.6 of AY 2006-07, the assessee had come up with a specific stand that it has not only debited purchases to profit & loss account and it has also credited profit & loss account with sale proceeds and if there were no purchases, there would not also be sales. Ld. CIT (A) without giving any findings on these pleadings abruptly proceeded to confirm the addition on account of bogus purchases on the basis of conjectures and surmises that, "from the invoices submitted during the appellate proce....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... interest of justice, we deem it necessary to remit the case back to the ld. CIT (A) to decide afresh after examining the entire evidence led by assessee by providing further opportunity of being heard. Consequently, ground no.1 of AYs2006-07 & 2007-08 is determined in favour of the assessee for statistical purposes. GROUNDS NO.2, 3, 4 & 5 OF AY 2007-08 GROUNDS NO.1, 2, 3, 4 & 5 OF AYs 2008-09, 2009-10 & 2010-11 10. Undisputedly, the assessee has received dividend income of Rs. 22,00,930/-, Rs. 19,73,245/-, Rs. 15,94,579/- and Rs. 40,76,753/- in AYs 2007-08, 2008-09, 2009-10 & 2010-11 respectively and claimed the same as exempt income from tax. It is also not in dispute that the assessee has not made suo motu disallowance on ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ed to be passed on the basis of evidence led and arguments addressed by the assessee. 13. When we peruse the impugned order passed by the ld. CIT(A) for AYs 2008-09, 2009-10 & 2010-11 again ld. CIT (A) admitted inter alia that the AO has not recorded his dissatisfaction as to the claim of the assessee that no expenditure has been incurred to earn the dividend income; that no fresh investment has been made by the appellant during the year under assessment; that interest taken for computing the disallowance u/s 8D i.e. Rs. 66,500/- has not been paid towards any loan rather the said interest payment relates to interest paid on late deposit of TDS on salary, but despite all these findings, ld. CIT (A) proceeded to restrict the additions to R....