2026 (1) TMI 757

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.... appeal for AY 2020-21 which arises out of an order of Ld. Commissioner of Income Tax (Appeals), NFAC [CIT(A)] dated 21-02- 2024 in the matter of an assessment framed by Ld. AO u/s 143(3) r.w.s. 144B of the Act on 23-09-2022. The registry has noted delay of one day in the appeal which stands condoned. The grounds of appeal reads as under: - 1. Whether on facts and circumstances of the case, Ld. CIT(A)/NFAC was justified in deleting the addition of Rs. 10,15,06,765/- made by the AO on account of unverified/unexplained purchases not appreciating that the case had bene selected from scrutiny on the ground that as per information available with the department, the assessee had made substantial purchases from such suppliers who were eit....

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.... which no names of the specific sellers which were found to be genuine have been mentioned by him nor the details furnished in respect each seller by the assessee on the basis of which the sales were accepted as genuine have been mentioned. 5. Whether on facts and circumstances of the case, Ld. CIT(A)/NFAC was justified in deleting the addition made by the AO at Rs. 10,15,06,765/- on account of non-genuine purchase on the ground that the sales aspect has not been questioned by the AO. 6. Whether on fact and circumstances of the case, the Ld. CIT(A)/NFAC was justified in deleting the addition made by the AO at Rs. 10,15,06,765/- on account of non-genuine purchases as the vendors had failed to provide the relevant details as....

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....ied by that firm. The Ld. AO alleged that the assessee failed to substantiate the purchases. Finally, aggregate purchases of Rs. 1015.06 Lacs were added to the income of the assessee as alleged bogus purchases. Appellate Proceedings 4.1 During first appeal, the assessee assailed the action of Ld. AO by way of elaborate written submissions and referred to various case laws on the issue of alleged bogus purchases. After due consideration of the same, Ld. CIT(A) made pertinent observations in the impugned order. 4.2 The assessee pointed out that it filed detailed replies to Ld. AO on various dates along with sufficient documentary evidences to substantiate these purchases. The same were simply ignored by Ld. AO. Further, the purchases....

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.... the Assessee. The assessee duly discharged its onus by providing complete details of purchases. Therefore, the disallowance was on assumptions rather on concrete evidences. On these facts, the impugned addition as made by Ld. AO was deleted. Aggrieved, the revenue is in further appeal before us. Our findings and Adjudication 5. From the facts, it emerges that the assessee is engaged in manufacturing and trading of non-ferrous metal. It is quite logical that without purchases, there could not be any sales. The sales turnover of the assessee has duly been accepted by Ld. AO. Merely because few of the suppliers have not filed their Income tax returns or the fact that they did not have any valid email Ids, the purchases could not be disa....