TaxTMI 
TaxTMI 
2025 (12) TMI 802
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....g the purchases to the extent of Rs. 48,13,275/- u/s. 37 of the Income-tax Act, 1961 (the Act), which is wrong, illegal and unjustified. 2.1. The facts in brief are that the assessee engaged in the business of wholesale trading of iron and steel mostly on consignment basis. The return o9f income was filed u/s. 139 of the Act declaring income of Rs. 48,13,270. The case of the assessee was reopened u/s. 147 of the Act by issuing notice u/s. 148 of the Act on 25.03.2022, on the ground that the assessee has made bogus and fictitious purchases worth of Rs. 49,98,500/- during the year from Divine Alloys & Power Co. Ltd. without actual supply of materials. The assessee filed the return of income on 07.10.2022, declaring total income of Rs. 48,1....
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....nsideration through banking channel and copies of the invoices along with the transportation receipts are available in the paper book. We also find that while disallowing the purchases, the corresponding sales made by the assessee were not disbelieved by the learned AO nor by the learned CIT (A). We observe from the page no.39 of the paper book that the assessee is a public limited company and was under liquidation and has paid up capital of Rs. 130.14 crores. We also find that from the perusal of the notice of sale/ e auction by the liquidator that the assets of the said company were put for sale. Therefore, the observation by the AO as well as by the learned CIT (A) are completely unfounded and devoid of merit that the said company is a b....
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....G4648 Page 58 of Paper Book-II 2. Details of the check post crossed. Kind perusal of the invoices placed at page 7 to 12 of the PB-I would envisage that the goods have been transported from Jharkhand to the adjoining state Bihar. It is respectfully submitted that the check posts are normally installed at the entry point of ever state. As such, there ought to have been only one check post in Bihar while transportation of the goods from Jharkhand to Bihar. 3. Why bills not contain any seal of the check post It is in this regard respectfully submitted that with the rolling out of Goods and Services Tax, ('the GST'), was rolled out from 01-07-2017 and with the rolling out of the GST the border commercial check posts....
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....tment. The report of the verification report shows that Divine Alloys And Power Co Limited never existed at the given address. The relevant potion of the report of the inspector of the Verification Unit is given hereunder in verbatim; As directed by the ITO(VU). I went to 139, Regent Estate, 139 14 176 Raipur Road, Regent Estate, Kolkata, West Bengal 700092 to serve the Notice u/s. 133(6) of the LT. Act. 1961 for the A.V. 2018-192 14.02.2023 to Mis Divine Alloys & Power Company Ltd. PAN AACCD133670 on 16.02.2023. On arriving at the given location, the address was verified which is a fully commercial building. However, the concerned company could not be found. 4.1 As per the information available with the department, the co....
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....he activity of providing only bogus bills/vouchers without supplying of goods to the appellant company. Hence, I am constrained to be in agreement with the finding of the Assessing Officer and hold that the appellant is unable to substantiate his claims and is not able to controvert the assessment order. The addition made by the Assessing Officer is therefore confirmed. 4. It is in this regard respectfully submitted that the assessee has in their previous submission submitted printout from various websites, placed at page 39-41 of PB-I to substantiate that M/s Divine Alloys And Power Co Ltd was an existing Company and had huge manufacturing facility. Attention in this regard is further drawn to the invoices placed at page ....