TaxTMI 
TaxTMI 
TaxTMI 
2025 (7) TMI 967
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....has erred in ignoring the documentary evidences of the genuine being purchases made by the assessee like Tax invoices of the parties, e-way bill, making of payment through banking channels, and all other evidences, which proves the genuineness of purchases made by the assessee. 2. b) That the Ld. CIT(A) has ignored the documentary evidence of the GST returns and confirmation of the same by GSTR-2A of the assessee without assigning any reasons. 3. That the sustaining of part addition is against the facts and circumstances of the case. 4. That the appellant craves leave to add or amend the grounds of appeal before the appeal is finally heard or disposed off." 4. The facts as gathered from the order of Ld. Assessing Officer and CIT(A) are that the assessee is the proprietor of Pragatie Steels. It is dealing in trading of different types of scrap. It had filed the return of income for the above said year on the basis of audited books of accounts, copy of which, has been placed before us in the Paper Book. The assessee is maintaining complete day to day stock tally in respect of different types of scrap, copy for which has been placed in Paper Book from pages 25 to 60. 5. The As....
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....e from the parties were supported by purchase invoices, e-way bills, remittance of purchases were made through banking channels. The Assessee relied upon various case laws of the Hon'ble Apex Court and some of the High Courts as per pages 4 to 7 of the order of CIT(A). It was further argued that if suppliers had not appeared before the Assessing Officer, no adverse conclusion could be drawn against the assessee. 9. The Ld. CIT(A) after considering the submissions of the assessee held that the total purchases cannot be held to be bogus and the disallowance of entire purchases in respect of two parties merely on the basis of enquiries conducted u/s 133(6) cannot be held to be bogus. It was, however, held by him that the transactions are not verifiable as the purchases could not be subjected to verification. The correctness of the price for material purchased by the appellant cannot be accepted and it was held that either the purchase from the such parties are over invoiced or the purchases were actually made, not from the such parties from whom it was claimed to have been made. It might have been purchased from the grey market without proper billings. Thus, under such circumstances,....
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.... were made by the assessee, they had valid GST Number and e-way bill was generated, the sample copies have been filed and that e-way bill could be generated only, when the parties had valid GST Number as on the date of transaction. 14. It was further argued that all the invoices produced before the AO were duly depicted in the GSTR 2-A, which proves that the parties have filed their GSTR-1 and further argued that it is the standard format of GST department that when party file their GSTR-1 and gives the detail of sales, the sales automatically get reflected in Form GSTR-2A, from where, the supplier comes to know the details of that ITC paid by them and are reflected in their Form 2A. Reliance was placed by the assessee on the following case laws:- a). M/s. Prime Steel Industries Pvt. Ltd. Vs The DCIT Circle, Patiala in ITA No. 275/CHD/2024,where judgments of Calcutta High Court in the case of M/s. LGW Industries Limited and Ors, vs. Union of India &Ors. In WPA No. 23512 of 2019 has been Followed on similar facts and circumstances. b). Besides that following judgments of the Hon'ble Apex Court and of Jurisdictional High Court have been relied upon as under:- i). CIT Vs Centur....
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....rissa Trading Corpn., reported in 159 ITR 78 (SC) and of the ITAT, Delhi Bench in the case of Karam Chand Rubber Industries in ITA No. 6599/Del/2014 as per copy placed before us. Thus, in nutshell, it was stated that the disallowance of Rs. 1,32,34,287/- as made by the CIT(A) is not in order. 18. The Ld. Departmental representative argued that the addition as made by the AO has substantially been reduced by the Ld. CIT(A), which is justified and since the suppliers did not respond to the notices u/s 133(6), thus, the genuineness of purchases made by the assessee are doubtful. It was also argued before us that the GST Number of the parties have become in active and, as such, the purchases made by the assessee were doubtful and thus the ld. DR relied upon the finding of the CIT(A). 19. We have gone through the order of AO/CIT(A), Brief Synopsis, Paper Books and Judgement set as filed by the assessee's counsel. Facts as brought out above are not disputed by both the parties and it is also an undisputed fact that the assessee is maintaining day to day 'stock tally' in respect of different types of purchases of scrap and against such purchases, the corresponding sales have been made. ....
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....". 20. This Counsel has referred to the judgment of 'Prime Steel Industries' of Chandigarh Bench of the ITAT as cited above and also the judgment of 'Supreme Court' in the case of Century Plywood, Leader Valves Pvt. Ltd. of Punjab & Haryana High Court and that of the Apex Court in the case of 'TejuaRohit Kumar Kapadia', as cited supra have been relied upon. Under similar facts and circumstances, the judgment of 'Supertech Forgings (India) Ltd.' of Jurisdictional Punjab & Haryana High is quite relevant to the issue. Since the sales have not been doubted and neither there is inflation in the purchases and no defects have been found in day-to-day maintenance of stock records in the shape of stock tally, therefore, no addition could be made on account of such so called bogus purchases. Further, we also find that the books of accounts of the assessee have not been rejected and under such circumstances, no such addition could be made in the hands of the assessee. 21. Regarding the profit embedded in purchases from such doubtful parties, we have considered the argument as presented by the assessee and also the facts as brought on by the CIT(A) in his order. We find that the rates of pur....