2023 (3) TMI 964

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....A)"], for the assessment year 2014-15. 2. In this appeal, the Revenue has raised the following grounds: "1(a)"Whether on the facts and the circumstances of the case and in law, the ld.CIT(A) has erred in deleting the addition of Rs.11,84,48,419/- made u/s 41(1) of the IT Act. 1961" (b)"Whether on the facts and the circumstances of the case and in law, the ld.CIT(A) failed to appreciate that the notice issued to creditors u/s 133(6) were not duly replied to?" (c)"Whether on the facts and the circumstances of the case and in law, the Id CIT(A) has given the relief without appreciating the fact that the assessee has not discharged the onus cast upon it?" 2 (a)"Whether on the facts and the circumstances of....

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....ad a turnover of Rs.209,05,17,091/- and a net profit of Rs.2,25,111/-. Thus, compared to the turnover the net profit of the assessee was only 0.010%. Further, it was observed that the trade payables as of 31/03/2013 were Rs.56,37,96,664/-, whereas the trade payables as of 31/03/2014 were Rs.157,20,30,237/-. Thus, there is an increase of Rs.100,82,33,573/- in trade payables as of 31/03/2014, as compared to the preceding year. Accordingly, in order to verify the genuineness of the trade payables and purchases, information was called from the parties, and notices were issued u/s133(6) of the Act at the addresses provided by the assessee. However, notices issued by the Assessing Officer ("AO") to many of the parties were returned unserved. Even....

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....eceipts (in case of import), etc. to establish the genuineness of the purchases treated the party as bogus and added the sum of Rs.11,90,33,194/- u/s 69C of the Act. As regard the sundry creditors also, in absence of satisfactory evidence to establish the identity and creditworthiness of the parties, and genuineness of the transaction treated the sum of Rs.22,20,12,982/- as bogus liabilities and added the same to the total income of the assessee u/s 68 of the Act. 4. The learned CIT(A) vide impugned order allowed the appeal filed by the assessee on the basis that the AO has not conducted the proceedings u/s 133(6) of the Act in a proper manner. The learned CIT(A) further held that field visits through the inspector were not conducted to ....

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....of enquiry. Further, despite the opportunity being granted, the parties were not produced before the AO during the assessment proceedings. Accordingly, the learned DR prayed that the matter be remanded to the AO for further enquiry. 6. On the contrary, the learned Authorised Representative ("learned AR") by referring to the paper book submitted that as the notices issued by the AO were returned unserved, therefore, the assessee filed the details as sought. However, these details were not taken into consideration by the AO while making the impugned additions. 7. We have considered the rival submissions and perused the material available on record. In the present case, due to high trade payables and very low net profit, the details of t....