2025 (4) TMI 783

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....of bogus purchases and unexplained expenditure. The respondent-assessee has filed Cross Objection claiming that the appeal is not maintainable. The appeal relates to assessment year 2018-19. 2. The appellant is an individual, engaged in the business of trading in industrial chemicals. The appellant has its main office in Mumbai and branch office at Ahmedabad. The appellant filed its Return of Income (RoI) for the year under consideration on 22.10.2018 declaring a total income of Rs. 72,65,930/-, which was duly processed by the CPC, Bangalore. The case was selected for scrutiny on the issue of bogus purchases and unsecured loans. The Assessing Officer completed the assessment under Section 143(3) r.w.s. 144B of the Act on 18.04.2021 and a....

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....of the documents and acceptability of the claim as made. The Assessing Officer sent the Remand Report on 08.01.2024 stating that on due verification of the documents submitted, the claim of the assessee was acceptable. In that view of the matter, the learned CIT(A) has allowed the appeal filed by the assessee. 5. It is now contended on behalf of the Revenue that the learned CIT(A) was in error in accepting the Remand Report and deleting the addition without appreciating that the Assessing Officer had not carried out proper verification/investigation in the matter. 6. We have heard parties. Perused record. 7. It is submitted by the learned DR that although in the Remand Report, the Assessing Officer had accepted the claim of the ass....

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....rt and has deleted the disallowances made on account of bogus purchases; both inter-branch and other parties, and unexplained expenditure added under Section 69C of the Act. Once the Assessing Officer has accepted the claim of the assessee after due verification of the documents produced, it is difficult to see as to how the Revenue can challenge the same on the spacious ground that the learned CIT(A) was in error in accepting and placing reliance on the Remand Report. 10. The issue is no longer res integra. In Jivatlal Purtapshi (supra) before the Bombay High Court, the ITO had made addition to the returned income of the assessee as part of branch profits arising from its branch. While the appeal against the addition was pending, the IT....