2021 (11) TMI 256

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....oc disallowance of Rs. 11,62,648/- being 25% of certain outstanding creditors. 2. In response to the notice of hearing, no one has come present on behalf of the assessee. With the assistance of the learned Departmental Representative, we have gone through the record carefully and proceed to dispose of the appeal ex parte qua the assessee. 3. The brief facts of the case are that the assessee is an individual. He has filed his return of income on 29.09.2015 declaring total income of Rs. 51,92,900/-. The assessee, at the relevant time, was engaged in the business of civil construction as a contractor and sub-contractor in the name and style of M/s. Engineering Builders. The case of the assessee was selected for scrutiny assessment and no....

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.... was made. 5. Appeal to the learned CIT(A) did not bring any relief to the assessee. The learned CIT(A) has specifically examined these three cases individually and recorded the findings. For the sake of reference, we take note of the finding recorded by the learned CIT(A) for one of the creditors namely Globe Trade, as under:- "4.3. I discuss one by one of about all three creditors: Globe Trade:- Ledger A/c - Engineering builders- appearing in the books of Globe Trade shows as under: 01.04.2014 Opening debit balance : Rs. 13,84,952/- 09.04.2014 Closing debit balance : Rs. 10,84,952/- TDS : Rs. 9,080/- Conclusion: Ledger details show there is no transaction between t....

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.... firm conclusion that the claim made by the assessee is bogus one. If M/s. Globe Trade has worked for the assessee and an outstanding balance of Rs. 10,84,952/- is remained to be paid, then how the 25% can be termed as non-genuine. The learned Assessing Officer has placed reliance on the decision of the ITAT in the case of Vijay Proteins Ltd. Vs. ACIT (supra) which is altogether a different case. In that case, the assessee company was engaged in the business of producing edible oils, oil cakes etc... It has made certain purchases which were alleged to be the bogus. The Tribunal, as a matter of fact, found that there is no dispute with regard to the sales achieved by the assessee; and, for achieving those sales, purchases must have done. The....