TaxTMI 
TaxTMI 
2026 (3) TMI 700
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....nafter referred to as 'the Act') dated 12.03.2024 by the Assessing Officer, ITO, Rewari (hereinafter referred to as 'ld. AO'). 2. The Ground Nos. 2 & 3 raised by the Assessee were stated to be not pressed by the Learned AR at the time of hearing. The same is reckoned as a statement made from the Bar and accordingly dismissed as not pressed. 3. The Ground Nos.1 & 7 raised by the Assessee are general in nature and does not require any specific adjudication. 4. The Ground Nos. 4 to 6 raised by the Assessee are in respect of common issue of disallowance of purchases made from three parties in the total sum of Rs 1,20,65,111. 5. We have heard the rival submissions and perused the materials available on record. The Assessee is in the ....
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....ich were required by the Learned AO were submitted vide online submissions dated 28-7-23, 11-8-23, 24-8-23 and 17-1-24. The Learned AR submitted that Assessee had furnished all the relevant documents in support of the purchases made by him. The e-Way bills containing the details of goods transported, toll receipts, details from the place of origin to place of destination, lorry number, mode of transportation, stock register and ledger account of all the suppliers in the books of the Assessee were duly furnished before the Learned AO. The Learned AO resorted to make some online inquiries from GST and similar portals and some third-party postal verification and the materials thus gathered were found not reconciling with the evidence / clarifi....
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.... the Act. This action of the Learned AO was upheld by the Learned CITA. 7. The Learned AR submitted that e-Way bills were not required to be submitted because the distance between the Assessee premises and the supplier's premises was less than 50 kilometres and in that scenario, there was no requirement of issuing e-Way bills under the GST laws. He also submitted that this argument was taken by the Assessee before the Learned CITA also, which is also mentioned in page 82 of his order. However, the Learned CITA had rejected this plea of the Assessee in the absence of documentary proof establishing the exact location and distance between the supplier and the place of delivery. Further, the Learned CITA had noted that the exemption prov....
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....hed the reply before the Learned AO directly confirming the transactions with the Assessee. While this is so, how the Learned AO could say that the party is not traceable? With regard to Sunil Kumar, the said party had duly confirmed to the Assessee that no notice has been received ever by him from the income tax department making enquiries qua the Assessee herein. With regard to Lalitha Devi, she had also said that no notice has ever been received. However, a confirming affidavit was collected from the party by the Assessee and filed before the Learned AO. 10. With regard to non-submission of e-Way bills and Dharamkatha receipts, the Learned AR submitted that the raw material purchased are either countable or not countable. There are sm....
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....n to make the disallowance in the case of the Assessee. It was also submitted that no adverse inference has had been drawn by the GST authorities on the documentation maintained by the Assessee for movement of goods. 11. The Learned DR reiterated the observations made by the lower authorities and made specific reliance on page 79 of the order of the Learned CITA. 12. We find that the Learned AR was able to meet each and every allegation leveled by the lower authorities in the instant case, which have been already elaborated hereinabove. Hence, we are thoroughly convinced that Assessee had duly discharged its primary onus by furnishing the relevant documents before the lower authorities. There is absolutely no evidence brought on recor....
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.... beyond 50 kilometers from the premises of the Assessee, which was admittedly not done by the revenue in the instant case. Further the Assessee had duly placed on record the entire GST returns and had provided evidences that no adverse inferences had been drawn by the GST authorities with regard to purchases and sales transactions carried out by the Assessee during the year under consideration and more particularly from the aforesaid three suppliers. We find that on one hand, the Learned CIT(A) makes the observation that compliance to GST laws would not override the evidentiary requirements of Income Tax Act, but on the other hand places reliance on the requirement provided under the GST laws with regard to e-Way bills for drawing an advers....