2021 (7) TMI 278

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....ts and circumstances of the case and in law, the Ld. CIT(A) erred in deleting the addition of bogus purchases of Rs. 12,13,802/- as genuine purchases. 2. Though the tax effect in this is Rs. 3,75,064, however, this appeal is filed because it is covered by exception mentioned in para 10 of the CBDT Circular No. 3/2018 dated 11.07.2018 as subsequently clarified by Board letter dated 20.08.2018 vide No. 279/mis./142/2007-ITJ(Pt.). 3. The appellant prays that the order of the Ld. CIT(A) on the above grounds be set aside and that of the AO be restored. 4. The appellant craves leave to amend or alter any ground or add a new ground which may be necessary." 2. Briefly stated, the assessee company which is engaged in the business of manufactu....

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....ssee assailed the assessment order before the CIT(A). It was observed by the CIT(A) that the A.O. had not properly considered the submissions that were made by the assessee before him. It was observed by the CIT(A) that the assessee had inter alia claimed that it had not made any transaction with one of the party, viz. M/s. Banjara Enterprises. On a perusal of the details filed by the assessee the CIT(A) found the aforesaid claim to be in order. As such, the CIT(A) being of the view that the assessee could not be fastened with an addition on the basis of an unverified statement of a third party, thus, vacated the addition of Rs. 1,78,500/- that was made by the A.O. qua the aforesaid party. As regards the remaining purchases, it was observed....

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....ompany (supra) and debited under the head 'repairs & Maintenance account', were concerned, it could not be concluded that no such purchases were made by the assessee for overhauling the water tank in its pharmaceutical manufacturing factory. At the same time, it was observed by the CIT(A) that the assessee had stated that the impugned purchases of Rs. 3,31,200/- made from M/s. Ramdev Trading Company may be disallowed. It was further observed by the CIT(A) that considering the fact that the assessee had only claimed depreciation on the 'Fixed assets' of Rs. 11,48,375/- (supra), therefore, only such claim of depreciation could be disallowed. On the basis of his aforesaid observations the CIT(A) upheld the addition qua the impu....

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....the addition was made on the basis of the information received from the DGIT(Inv.), Mumbai. 7. We have heard the ld. authorized representatives for both the parties, perused the orders of the lower authorities and the material available on record. We may herein observe that the exception carved out in Para 10(e) of the CBDT Circular No. 3/2018 (as amended on 20.08.2018) is qua the appeals filed by the revenue where addition is based on information received from external sources in the nature of law enforcement agencies such as CBI/ED/DRI/SFIP/Directorate General of GST Intelligence (DGGI). For the sake of clarity, we may cull out the exception carved out in Para 10(e) of the CBDT Circular No. 3/2018 (as amended on 20.8.2018), which reads a....