2023 (6) TMI 720

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....sessee, inadvertently, remained undecided. Therefore, the assessee filed a miscellaneous application under Section 254(2) of the Income-Tax Act, 1961, being MA No.887/Del/2019, seeking rectification of the order. 3. After considering the submissions of the assessee, the Tribunal vide order dated 14.02.2023 recalled the appellate order for the limited purpose of adjudicating the following additional grounds: i) On the facts and circumstances of the case and in law, the appellant submits that sales amount and quantitative details of opening stock, purchases, sales, closing stock are duly accepted by A.O in such situation entire bogus purchases of Rs.30,00,000/- would not be held as undisclosed income rather profit margin embedded in such p....

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....t proceedings, though, inquiry was carried on to ascertain the genuineness of the purchases by issuing summons under Section 131 of the Act to the concerned entity, however, the summons returned back unserved. Even, notice issued under Section 133(6) did not elicit any response from the concerned party. Thus, ultimately, the Assessing Officer treated the purchases of Rs.30,00,000 as unexplained investment and added back to the income of the assessee. Though, the assessee contested the addition before learned Commissioner (Appeals), however, the addition was sustained. 7. Before me, learned counsel appearing for the assessee submitted that assessee's accounts are under statutory audit and all purchase and sale transactions including the tra....

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....ty has provided accommodation entries without any real transaction. However, it is a fact on record that assessee has not only maintained books of account but its accounts are under statutory audit. It is the contention of the assessee that all purchase and sale transactions have been duly recorded in the books of accounts. On a careful reading of the assessment order, it is observed that the Assessing Officer has not pointed out any deficiency in the books of accounts maintained by the assessee. In fact, the Assessing Officer has not rejected the books of accounts. The contention of the assessee that all purchase and sales have been duly reflected in the sales tax return and the fact that quantitative tally of purchase and sales have been ....