2024 (4) TMI 888

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....tances of the case. 3. The assessee is engaged in the business of manufacture of rice from paddy at Bazida Jatan Road, Karnal. The assessee has shown sales an gross profit of Rs 20.59 crores and Rs 4.29 crores respectively. During the year under consideration, the assessee company received unsecured loans from 8 parties listed in pages 2 and 3 of the assessment order. The ld. AO selected 5 parties out of 8 and issued summons u/s 131 of the Act. 3 parties responded directly by furnishing the requisite details. However, in respect of two parties viz. M/s Gagan Enterprises of Rs 1,17,23,564/- and M/s R S Agro Foods of Rs 61,99,752/-, the summons issued u/s 131 of the Act were returned back unserved with postal remarks 'no such person exists in the said address'. Another summons was issued by the ld. AO on 31.10.2017 to these two parties which remained unserved. Inspector of Income Tax was deputed to make independent enquiries and serve the summons u/s 131 of the Act to the aforesaid two parties. The Inspector reported that the said parties / concerns mentioned are not existing on the said address. Infact the Inspector Report stated that in the address of M/s R S Agro Foods, it was ....

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.... (i) Copy of Account along with confirmation statement (ii) Copy of Bank Statement of M/s R S Agro Foods from Karur Vysya Bank for the period 29.11.2014 to 31.03.2015 (iii) Copy of A/c of M/s R S Agro Foods for the period 01.04.2015 to 31.03.2016 (iv) Copy of bills along with Transportation GRs (v) Copy of stock register duly attested by market committee is enclosed in evidence to stock released to parties against respective bills for which copies have been filed above. The party has filed confirmation with your good office, in response to your notice as per communication received from party. 5. The ld. AO observed that in compliance to summons issued u/s 131 of the Act to the transporters of Karnal, the Partner / Proprietor of some of the transport companies namely M/s Balaji Transport Co., M/s Mahadev Transport Company and Shri Sai Road Carriers had attended the proceedings but all these persons had stated that they had only issued blank bilties to the parties and not a single word has been written on bilties by them. The ld. AO accordingly sought to disbelieve the explanation of the assessee that unsecured loans received during the year und....

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.... a. R.S. Agro Food, 2251, 3rd Floor, Gali Raghunandan, Naya Bazar, Delhi Deposit in our Bank A/c by RTGS Amount Amount available with Gagan Enterprises in his Bank A/c before RTGS (Paper Book Pages 114-120) 29.11.2014 Rs. 24,99938 Rs. 38,88,309 22.12.2014 Rs. 1499,938 Rs. 43,61,933 23.12.2014 Rs. 24,99,938 Rs. 28,67,181 06.02.2015 Rs. 37,23,936 Rs. 40,04,031 07.02.2015 Rs. 4,99,938 Rs. 5,10,007 28.03.2015 Rs. 2,99,938 Rs. 18,53,937 28.03.2015 Rs. 6,99,938 Rs. 15,53,937 7. Further the assessee reiterated that it had submitted the copy of ledger account , copy of bills along with transport GRs, copy of bank statements of the lenders, F-Form of M/s R S Agro Foods and M/s Gagan Enterprises, copy of stock register attested by the market committee with respect to stock out for sale to M/s R S Agro Foods and M/s Gagan Enterprises in next year,copy of ledger account of Sale of Rice in next year, copy of ITR acknowledgement of the proprietors of M/s R S Agro Foods and M/s Gagan Enterprises and Confirmation from the said parties. It was also submitted that Sh. Sanjeet Kumar , Proprietor of M/s Gagan Enterprises had ....

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....ire purchases made from the party was treated as ingenuine and disallowance was made in the assessment. The ld. AO issued a show cause notice as to why the purchases made from Prashant Agro Foods should not be treated as ingenuine. The assessee responded by furnishing the following details :- "(i) Copy of A/c of the party for the period 01.04.2014 to 31.03.2015 alongwith confirmation from the said concern (ii) Copy of Bank Statement of Prashant Agro Foods for the period 07.01.2015 to 31.3.2015 (iii) Copy of Bills along with transportation GRs issued to M/s Prashant Agro Foods (iv) The Party has informed that separate confirmation have been sent to your good office 10. Apart from this, the assessee met each and every averment made by the ld. AO in the show cause notice in the reply letter filed with facts and figures. The ld. AO however disbelieved the entire contentions of the assessee and proceeded to treat the purchases made from this supplier as ingenuine and disallowed a sum of Rs 1,06,53,404/- in the assessment. 11. The assessee pleaded before the ld. CIT(A) that the ld. AO vehemently relied on the report of the Inspector to draw adver....