2024 (10) TMI 999

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....re inter-connected, the same are being disposed off by this common order. We are taking ITA No.61/DDN/2022 for Assessment Year 2013-14 as lead case. 3. Brief facts of the case are, assessee filed its return of income in AY 2013-14 on 28.09.2013 declaring total income at Rs. 14,48,980/-. The case was selected for scrutiny under section 143 (3) of the Income-tax Act, 1961 (for short 'the Act') and the same was completed on 25.08.2015 accepting the returned income. Based on the information from the Deputy Director of Income-tax (Inv.)-1, New CGO Complex, NH-IV, Faridabad (Haryana)- 121001 that assessee has taken accommodation entries to the extent of Rs. 4,92,806/- in the form of bogus expenses from non-existing concern i.e. Shri Ganpati Ente....

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....g Officer and dismissed the appeal filed by the assessee. 5. Aggrieved with the above order, assessee is in appeal before us raising following grounds of appeal :- "The first ground of appeal relates to the fact that the Ld. Assessing Officer has erred in law and facts of the case and has wrongly made an addition of Rs. 4,92,806/- when all explanations and supporting documents were submitted by the appellant." 6. At the time of hearing, ld. AR for the assessee submitted that assessee is in the business of manufacture of M.S. Ingots and its manufacturing unit located at Kotdwar. He submitted that the original assessment u/s 143(3) was already completed and accepted the returned income filed by the assessee. Subsequently, the assessment w....

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....observed that the assessee is a manufacturer of M.S. Ingots and it uses scrap steel to manufacture the same. We observed that the assessee has earned revenue of Rs. 27.75 crores and consumed the material of Rs. 22.74 crores. Since assessee is dealing with scrap material it has to deal with unorganized sector and in that process, one of the suppliers who is a scrap vendor obtained certain bills from Shri Ganpati Enterprises. In the investigation in the case of Manoj Kumar who was controlling several entities which were not in existence and it is found that Shri Ganpati Enterprises is one of such enterprises through whom Manoj Kumar has issued bills to other parties. As per the facts on record, scrap vendors have received bogus bills to the e....