TaxTMI 
TaxTMI 
TaxTMI 
2025 (10) TMI 34
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....r Petitioner humbly submits that all the documents and evidences such as copies of purchase bill, copies of ledger accounts of various parties in the books of your petitioner, copy of bank statements confirming the payment made, the quantitative statement in respect of purchase and corresponding sales were furnished to the learned Income Tax Officer during the assessment proceeding and to the Learned CIT (Appeal) during hearing. 5. Your Petitioner prays that the disallowance of Rs 23,06,220/- made by the Learned Income Tax Officer and Confirmed by CIT (Appeals) be deleted. 6. Your Petitioner humbly submits that the case laws cities by the Learned Income Tax Officer and the Learned CIT (Appeals) are distinguishable on facts. 7. The Appellant craves leave of Your Honour to add to, alter, amend and/or delete all or any of the foregoing grounds of appeal. 2. The brief facts of the case are that Assessee is an individual and having business income from proprietorship firm Mahima Steels carrying business of trading in Ferrous and Non Ferrous Metal. The case was reopened on the basis of information received from DGIT (Inv.) Wing of Sales Tax Department that t....
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....urchases as the profit element therein and made the addition of Rs. 23,06,220/-. 10. After having considered the material placed on record and also hearing the parties at length, I find that the assessee had proved by placing on record all the evidences to substantiate the genuineness of its purchases. In this regard, I have evaluated the following documents: i. Copies of purchase bills ii. Stock register Copies of sale bills iv. Bank statement evidencing payment by account payee cheques V. Ledgers of purchase parties in Assessee's and vi. Corresponding sales made from purchase parties. 10. The copies of purchase bills, demonstrates that the impugned purchases of the Assessee are supported by third party invoices. This also demonstrates that the Assessee has not merely claimed the purchases as expenditure without there being proper evidence of the same. This shows the genuineness of Assessee's purchases. The factum of third party vouchers having been issued demonstrates that the purchases are genuine. 11. The documents regarding Stock register/ Quantity tally clearly shows entries of the doubted purchases being ....
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....es is comparable to the gross profit on other sales. Thus, there were no reasons to doubt the genuineness of the transactions more so when sales out of these very purchases have not been doubted and taxed as income. 16. Thus, it can be seen that the Assessee had adduced all evidence before the AO as called for by him to substantiate the genuineness of its purchases. 17. On the contrary, the AO had summarily rejected the submissions and did not even conducted any enquiry of his own and merely relied on the purported findings of the Sales Tax Department. The AO did not even confront the Assessee with such findings during the course of assessment proceedings and directly referred to the same in the assessment order thereby even violating the principles of natural justice. Moreover the AO did not find any discrepancy in the evidence furnished by the Assessee and directly made the impugned addition without giving any reasons. In this regard reliance is being placed upon the decision in the following case laws: 1. CIT v. Nikunj Eximp Enterprises (P.) Ltd. [2013] 216 Taxman 171 (Bom.) (HC) Where sales were supported by purchase and payment was made through banks, merely bec....
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....nces produced by the assessee are weighed against the information of the Sales tax department, it becomes clear that piece of the information was too light. Maximum it was a starting point for further investigation. But, the AO stopped at the beginning and made an addition though the assessee had produced reliable evidence in his favour. Secondly, in our opinion the CIT (A) had rightly opined that without purchases there cannot be any sale. Considering the facts and circumstances of the case, we are of the opinion that the order of the CIT (A) does not suffer from any legal or factual infirmity. So, confirming his order, we decide the effective ground of appeal against the AO. 8. ITO v. Premanand [2007] 107 TTJ 395 (Jd.), Since the AO had made addition merely on the basis of observations made by Sales-tax Department and had not conducted any independent enquiries, addition was to be deleted when the assessee had discharged primary onus cast on him by showing purchase in books of account, payment by way of account payee cheque, and producing vouchers of sales of goods 9. Cannon Industries (P) Ltd. v. DCIT [2015] 59 taxmann.com 65 (Mum.), When sales and all other qu....