TaxTMI 
TaxTMI 
2018 (4) TMI 1910
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.... 79,82,382/- made on account inflated purchases specifically when such purchases were not entered in the material inward register and goods receipt register? iii) Whether the findings of the Tribunal are perverse in upholding the findings of the CIT(A) of deleting the addition of Rs. 1,23,879/- on account of bogus payment of commission?" While deciding the issue groundwise, the Tribunal has in ground no. 1 covered issue no. 2 by observing as under:- "3.3. We have heard rival contentions, perused the material available on record and gone through the orders of the lower authorities. We find that the ld. CIT (A) while deleting the addition, has discussed the matter in detail and in para 6.5 to 6.13 has observed as under :- " 6.5. I have perused the assessment order as well as remand report of the AO, submissions made including judicial citations given therein and cross reply of the appellant and find that an addition of Rs. 79,82,382/- has been made by the AO on account of unexplained/inflated purchases. AO has stated in the order that purchase bills for purchases of HR sheet and LPG sheets from following parties were found to be not containing any stamp ....
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....tted the details of Banks through which the payments have been made/encashed to/by these parties. The appellant has further requested the AO to issue the summons to these parties, if any further investigation from these parties is required. It is submitted that it did not have dealings with these parties since last 4-5 years and without purchases & consumption of material, it was not feasible for the company to produce the desired quantity of cylinders. It is submitted that copies of bills of Agarwal Bros. impounded with AO may kindly be seen and it would be found that each bill is supported with stores receipt cum Inspection report. Each bill has the stamp of gate entry with proper gate entry number and stamp of stores department with proper serial number of entry in GRR. Each voucher has been supported with the signature of person who verified the inspection report, storing incharge, signature of person who has prepared Stores Receipt Cum Inspection Report. Each bill contains sales tax number and truck number, by which the goods were dispatched. There is no infirmity of any kind in these bills. 6.10. It is submitted that copies of purchase bills along with relevant detai....
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.... bank account after receipt of bills and a copy of the ledger account showing all these details has been filed on record. Therefore, the contention of the appellant with regard to purchases of Rs. 30,85,511/- made from this party during the period under consideration, is found to be in order, in the absence of any material to the contrary available on record. 6.13. Thus, in view of the above discussion and in the absence of any material/evidence to the contrary available on record, I hold that there is no justification on the part of the AO to treat the purchases from these parties as inflated/not genuine. Accordingly, I delete the addition of Rs. 79,82,382/- made by the AO under this head." After going through the above observations of the ld. CIT (A), we find no infirmity in the order of ld. CIT (A), who following the decisions of the Tribunal, had deleted the addition. The order of ld. CIT (A) is upheld. The ground of the revenue is rejected. The question no. 1 which has been raised by the department is regarding Section 133A, the Tribunal while considering the same has relied upon earlier decision and reproduced the finding of CIT(A) which reads as under:- ....
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....ied in making an addition on this account after extrapolating the figures of scrap generation and AO has adopted the same rate of sale of scrap which has been used in AY 2004-05. Therefore, the addition made on this account may by deleted in the absence of any evidence. The appellant has placed reliance on a number of decisions of various courts to substantiate its arguments. 7.9. I have gone through the material available on record and find that addition has been made by the AO on the basis of extrapolation of the figures quantified on account of papers found pertaining to some other period during the course of survey operation at the premises of the appellant. The additions made by the AO on account of scrap sale were based on the papers found which pertain to AY 2004-05 & 2005- 06. AO has not brought on record any other material or conducted any enquiry to establish the receipt of money out of the books on account of sale of scrap in this year. 7.10. Therefore, considering all these facts and in the absence of any evidence of scrap generation having been sold out of the books at higher rates, I hold that there is no justification on the part of the AO in making....