TaxTMI 
TaxTMI 
TaxTMI 
2025 (8) TMI 1689
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.... and also to private parties besides trading in items relating to air conditioning systems. The total sales for the year before us was declared at INR 6,44,87,306/-. The AO accepted trading result declared however, on verification of the books of accounts, it was observed that assessee shown sundry creditors of INR 9,06,59,009/- as on 31.03.2012 which were very high thus, the AO proceeded to examine these creditors. After verification, AO short-listed four parties to whom notices were issued u/s 131 of the Act which were returned unserved. During personal visit by the Inspector, it was found that either the shop found closed or no shop was available at the given address. Thereafter, the AO discussed the outcome of enquiries made in respect of each of the party in para 2.6 of its order and held these four parties as bogus and unexplained creditors and total outstanding in their names at INR 3,36,88,080/- was added as income from undisclosed source in the hands of the assessee. Besides this, other petty additions were also made. Accordingly, total income of the assessee was assessed at INR 3,62,25,707/-. 3. Against this order, assessee preferred an appeal before Ld. CIT(A) who vide ....
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....nt details during the remand proceedings before the AO on 06.10.2016. Thereafter, the Remand Report was submitted on 09.02.2018 wherein the AO again alleged the creditors as bogus. On supply of the copy of the said remand report a re-joinder was submitted by the assessee on 12.03.2018. Before us, Ld.AR of the assessee filed a chart wherein relevant details as filed before the lower authorities and available in Paper Book is tabulated as under:- Party Ledger A/c in books of 'A' Ledger A/c of 'A' in books of creditors Invoices Affidavit of creditors Notrized Creditors have replied to notices u/s 133 VAT Return & Number Form ST-38 (evidencing movement of goods) + invoices filed by creditor VAT returns of creditors verified by AO Karthik Enterprises Pages 29 to 3 Pages 139 to 142 Pages 31 to 42 Pages 137 to 138 Notice @ page 327/reply @ page 339 06771938513 Pages 167 to 182 Page 143 to 166 Notice @ page 338/reply @ page 330 of PB Aradhna Trading Co. Pages 11 to 12 Pages 84 to 88 Pages 13 to 28 Pages 82 to 83 Notice @ page 298/reply @ page 299 06971937821 Pages 121 to 136 Page 89 to 120 Notice @ page 321/reply @ page 324 Khan Enterprises Pages 43 Pages 1....
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.... not doubted as trading results declared by the assessee, were accepted by the AO. As is evident from the chart reproduced above, the assessee had filed all the plausible evidences in support of the purchases made and to prove the genuineness of these suppliers. The assessee has produced stock register wherein day-to-day purchases and sales were recorded, which were never doubted. Assessee filed the copies of invoices issued by these parties and further, filed their VAT returns wherein they declared the sales made to assessee. It is also seen that assessee had filed Form ST-38 to support the contention of movement of goods from suppliers and carried with goods during transportation. Assessee further field confirmations and affidavits of these parties. By filing all these details, in our considered opinion, burden casted upon the assessee was duly discharged. It is further seen that the AO made enquiries from Haryana State VAT Department who also affirmed that VAT returns filed by the assessee are verified. The assessee has filed the affidavits of all the supplies wherein they have confirmed the supplies to the assessee and such affidavits remained uncontroverted. It is also a matte....
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....t of material purchased. - Copy of Vat return of the supplier in proof of purchases by the assessee duly reported by the supplier to the VAT department as sales made by it to the assessee. - Copy of Vat return filed by the assessee with VAT department in proof of purchases made by him from the supplier. It is further seen that the supplier was available at the shop when inspector visited the shop who served notice to him and was duly responded u/s 133(6) of the Act by the supplier confirming the transactions. Copies of the ledger accounts, bills etc. were already filed by the assessee. It is further seen that partial payments were made through banking channel after 31.03.2012 and the copy of bank a/c of the assessee was also filed. It is also stated by the assessee that supplier sued for the recovery of the outstanding amount and served a recovery notice on the assessee, copy of which was also filed before the lower authorities. M/s Khan Enterprises: The purchases made from this party during the year under consideration were of Rs 28,03,019/- and the balance outstanding was disallowed. In order to prove the genuineness of the purchases, the following documents were filed alo....
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.... is not in dispute that the creditors outstanding related to purchases and the trading results were accepted by the AO. We are, therefore, of the opinion that no substantial question of law arises for consideration in this case. The appeal is accordingly dismissed." 12. Hon'ble Bombay High Court in the case of CIT-1, Mumbai Vs Nikunj Exim Enterprises (P.) Ltd. (2013) 216 Taxman 171 in similar circumstances observed in para 7 as under: "7. We have considered the submission on behalf of the revenue. However, from the order of the Tribunal dated 30-04- 2010, we find that the Tribunal has deleted the additions on account of bogus purchases not only on the basis of stock statement i.e. reconciliation statement, but also in view of the other facts. The Tribunal records that the Books of Accounts of the respondent-assessee have not been rejected. Similarly, the sales have not been doubted and it is an admitted position that substantial amount of sales have been made to the Government i.e. Defence Research and Development Laboratory, Hyderabad. Further, there were confirmation letters filed by the suppliers, copies of invoices for purchases as well as copies of bank statement all of....