TaxTMI 
TaxTMI 
TaxTMI 
2024 (10) TMI 1201
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....tion was passed out of time, invalid, passed without jurisdiction and not sustainable both on facts and in law. 3. The CIT (Appeals) - 20, Chennai failed to appreciate that the search assessment completed by making the disputed addition(s) in the absence of valid incriminating seized material relatable to such addition(s) should be reckoned as nullity in law and further ought to have appreciated that the judicial trend in this regard was completely over looked and brushed aside in passing the impugned order there by vitiating the related findings. 4. The CIT (Appeals) erred in sustaining the disallowance to the tune of Rs. 11,68,34,443/- being the purchases claimed in the books of accounts maintained by the Appellant based on the excel sheet found at the time of search without assigning proper reasons and justification. 5. The CIT (Appeals) failed to appreciate that the disputed purchases were genuine and further ought to have appreciated that the confirmations were furnished from all the parties pertaining to the disputed purchases establishing its genuineness there by vitiating the related findings in the impugned order. 6. The CIT (Appeals) failed to appreciate that the ....
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....oper reasons and justification. 14. The CIT (Appeals) failed to appreciate that the presumption of unaccounted interest earned by the Appellant was wholly unjustified especially in the absence of any unaccounted financial transactions coupled with the admitted position of the Revenue placing reliance on a dumb document there by vitiating the findings recorded in relation there to. 15. The CIT (Appeals) failed to appreciate that further in absence of any evidence either direct or indirect for the actual flow of cash, the presumption of earning unaccounted interest in such circumstances should be reckoned as bad in law. 16. The CIT (Appeals) - 20, Chennai failed to appreciate that the excel sheet relied upon by the Assessing Officer should not be construed as 'incriminating seized material' and further ought to have appreciated that the contents of the seized material had no evidentiary value in the absence of any corroborative evidence so as to justify the addition made in this regard. 17. The CIT (Appeals) - 20, Chennai failed to appreciate that there was no independent examination carried out by the Revenue to examine the said parties to test the stand of the Appel....
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....our adjudication would be as under. 1.4 The assessee being resident firm was subjected to search action u/s 132 on 28-10-2020. Accordingly, an assessment was framed u/s 143(3) on 04-05-2022 making certain additions in the hands of the assessee which are subject matter of this appeal. The assessee filed return of income for this year on 31-03-2022 admitting income of Rs. 67.59 Crores. 2. Addition of Bogus Purchases 2.1 This addition is based on certain excel sheet as found from personal computer used by Shri Vinoth, GM. The same was seized vide Annexure ANN/KKM/VSCO/LS/S-2. The excel sheets titled as 'AA' and '1920' were maintained and these had entries SUPER and TOPER. Shri Vinoth, in sworn statement dated 30-10-2020, admitted that one of the excel sheets titled SUPER contain cash received from various parties against whom bogus purchases were entered in regular books of accounts. Though the payments were made through banking channels but subsequently cash was received back from them. On examination of excel sheet titled 'AA', cash received from bogus suppliers was updated for the period till 31-03-2020. Few of the parties were admitted by Shri Vinoth to be 100% bogus parties i.....
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....erent footing since the search has happened on the assessee on 28- 10-2020 and complete evidence of alleged bogus purchase is not on record. The assessee has filed ledger extracts and confirmation of all the suppliers in the paper-book to support the submissions that the purchases are genuine for this year. We also observe that the findings of Ld. AO are primarily based on findings given for AY 2020-21 wherein the assessment has been framed u/s 153A on the basis of incriminating material. However, for this year, no enquiry from any of the suppliers has been made by Ld. AO. In this year, the assessment has been framed u/s 143(3). Therefore, for the present year, it was incumbent on the part of Ld. AO to make necessary verification / enquiries from alleged bogus suppliers. The Ld. AO could not proceed merely on the basis of findings of earlier years. The search has happened in the middle of the year and there are not adequate evidences to hold that the purchases made throughout the year are bogus purchases. The assessee is engaged in construction activity and would require purchase of raw material to carry out construction activities. In the light of all these facts and to plug the l....