TaxTMI 
TaxTMI 
2026 (2) TMI 1305
X X X X Extracts X X X X
X X X X Extracts X X X X
....rom grounds of appeal, it is quite evident that the issues that fall for our consideration are - (i) Addition on account of alleged bogus purchase; & (ii) Addition of cash deposit and time deposit. Having heard rival submissions and upon perusal of case records, the appeal is disposed-off as under. 2. Addition of Alleged Bogus Purchases 2.1 The assessee's case was scrutinized to examine the purchases. The assessee is stated to be engaged in production of lead ingots through recycling of waste lead acid batteries. In support of purchases, the assessee furnished financial statements, bank account details, list of sundry creditors, purchase register, ledger extracts etc. To verify the purchases, notices were issued u/s 133(6) to 36 parti....
X X X X Extracts X X X X
X X X X Extracts X X X X
....e consideration of assessee's elaborate written submissions, noted that the assessee reflected turnover of Rs. 44.03 Crores with purchase of Rs. 42.95 Crores. The Gross Profit (GP) rate was 2.45%. The basic raw material for the assessee was lead which is extracted from discarded and disposal of old batteries which is usually sourced from Kabadis (dealer selling waste material). These vendors were mostly street vendors who would collect waste material from door to door and from certain shops dealing in the same. The assessee has to deal with number of such people who keep on moving from one place to another and from city to city. The assessee had duly taken their respective GST numbers and the payments to the suppliers were through baking ch....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... shops dealing in the same. The assessee has to deal with number of such people who keep on moving from one place to another and from city to city. The assessee reflected turnover of Rs. 44.03 Crores with purchase of Rs. 42.95 Crores. The sales turnover has been accepted but the purchases have been doubted primarily because of the fact that the notices sent u/s 133(6) did not yield satisfactory response. The same could be explained by the fact that the vendors are moving vendors and may not be available at the given addresses at the time of enquiries which has large time gap from the date of purchases so made by the assessee. Nevertheless, the assessee has furnished requisite documents with respect to these purchases which include purchase ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....issed. 3. Addition of Cash Deposit & Time Deposit 3.1 The assessee deposited cash of Rs. 30.32 Lacs in two bank accounts. The same was added u/s 68 for want of proper explanation from the assessee. Similarly, the assessee had made time deposit with HDFC Bank for Rs. 70 Lacs which was likewise added to assessee's income u/s 68. 3.2 Upon further appeal, Ld. CIT(A) observed that the assessee had furnished all bank statements. The deposits were sourced out of earlier withdrawals. The assessee would withdraw cash to meet expenses and the excess cash is deposited back. The assessee had withdrawn Rs. 68,76,200/- from HDFC Bank and Rs. 10,46,105/- from PNB. After utilizing the major amount, the excess cash of Rs. 30.32 Lacs was re-deposite....