2023 (2) TMI 316

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....n the circumstances of the case the Ld. CIT(A) has erred in law and on facts in deleting the additions of Rs. 1,55,27,844/- and Rs. 62,36,308/-, made by the AO by treating these purchases from M/s Bajaji chain & Co. And M.s Bengali chain & Co. as bogus, without appreciating the detailed findings given by the AO in the Remand Report 2. That on the facts and in the circumstances of the case the Ld. CIT(A) has erred in law and on facts in deleting the additions of Rs. 62,36,308/-, made by the AO by treating the purchases from Bengali Chain & Co. bogus without appreciating that in response to the summon u/s 131 Sh. Sumer Chand Verma, prop: M/s Bengali Chain Co., failed to appear despite getting adequate opportunities, thus, neither the....

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....2,35,40,300/- on 31.12.2008 under section 143(3) of the Act against which the appeal of the assessee filed before the Ld. CIT(A) was allowed. The Revenue challenged the order of the Ld. CIT(A) before the Tribunal. Vide order in ITA No. 4773/Del/2009 dated 30.09.2011, the Tribunal set aside the order of the Ld. CIT(A) on the issue of purchases amounting to Rs. 2,17,64,152/- for decision afresh. Accordingly, the Ld. CIT(A) has decided the said issue afresh whereby he deleted the addition of Rs. 1,55,27,844/- and Rs. 62,36,308/- made by the Ld. AO by treating the purchases from M/s. Balaji Chain & Co. and M/s. Bengali Chain & Co. respectively as bogus recording the following observations and findings in para 10 of the appellate order: ....

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....ced reliance on the order of the Ld. AO and submitted that necessary documents were not filed by the assessee before the Ld. CIT(A) and therefore the requisite verification in respect of the transactions could not be undertaken by him. The Ld. AR refuted the contention of the Ld. DR and submitted that all documents were filed before the Ld. CIT(A) who after due consideration recorded his findings that the impugned additions made by the Ld. AO were not justified. He submitted that the Ld. CIT(A) had called for remand report from the Ld. AO and during remand proceedings the parties from whom the assessee had made the purchases confirmed the transactions which is obvious from para 8 of the appellate order. 6. We have considered the submissi....

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....ich he admits. No adverse inference can be drawn against the assessee merely because of non personal appearance of the Prop. of Bengali Chain & Co. before the Ld. AO from whom the assessee had made purchases of Rs. 62,36,308/- . Admittedly, in response to summons issued by the Ld. AO under section 131 of the Act, Shri Muni Ram Verma, Prop. of Balaji Chain & Co. appeared before the Ld. AO on 15.02.2019 and his statement was duly recorded in which he confirmed having made sale of jewellery items of Rs. 1,55,27,844/- to the assessee during the year. The Ld. CIT(A) has observed in para 9 of the appellate order that in the statement Shri Muni Ram Verma, Prop. of Balaji Chain & Co. clearly states that he is furnishing bank statement and also furn....