TaxTMI 
TaxTMI 
2026 (3) TMI 1110
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.... submissions uploaded duly supported by Annexures. 2. The learned Commissioner of Income Tax (Appeals) erred in law and on facts in confirming the addition of Rs. 9,00,63,954/- made u/s 69C r.w.s. 115BBE, without appreciating the correct facts, books of account, purchase and sales ledgers, bank statements etc; and explanations placed on record. 3. The learned Commissioner of Income Tax (Appeals) failed to consider that the difference between the purchase figures and the creditors' statements arose solely due to GST-inclusive vs. GST-exclusive accounting, and the purchases were fully reconciled and properly recorded. 4. The learned Commissioner of Income Tax (Appeals) erred in upholding the disallowance of entire purchases even though the Assessing Officer had accepted the sales as genuine, rendering the addition self-contradictory and untenable. 5. The learned Commissioner of Income Tax (Appeals) erred in confirming the applicability of section 69C despite the purchases being duly recorded in the books and the source of expenditure being fully explained. 6. Without prejudice, the learned Commissioner of Income Tax (Appeals) erred in ....
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....ow filed all communications and evidences, which were filed to the AO and which were, therefore, even before the Ld. CIT(A) to prove its case in the form of the paper book. 4. Having stated so, he drew our attention to the facts of the case pointing out that the purchases made by the assessee to the tune of Rs. 9,00,63,954/- disallowed by the Revenue authorities treating them as an ingenuine pertained to the parties listed at para 4.2 of the assessment order as under: Sr. No. Name of the party Amount in Rs. 1. Ventura Metal and Alloys 5,09,43,065/- 2. Hindustan Metal Corporation 2,30,87,700/- 3. Pioneer Oversees 26,39,400/- 4. Arihant Tubes 18,32,058/- 5. Calcutta Tube Valves Flanges Pvt. Ltd. 10,92,632/- 6. Prabhat Bright Steel Industries 89,169/- 7. Somnath Trading Co. 92,60,791/- 8. Aditya Steel 1,55,345/- 9 Bhavya Impex 9,63,794/- Total 9,00,63,954/- 5. Ld. Counsel for the assessee drew our attention to the findings of the AO leading to the disallowance of the impugned purchases contained at para 5 of its order as under: "5. Summary of information/evidence co....
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.... the order is reproduced hereunder: "5.2.2. I have carefully considered the facts of the case, the submissions made by the appellant, and the findings recorded in the assessment order. "Unexplained expenditure, etc. TAX 69C. Where in any financial year an assessee has incurred any expenditure and he offers no explanation about the source of such expenditure or part thereof, or the explanation, if any, offered by him is not, in the opinion of the Assessing Officer, satisfactory, the amount covered by such expenditure or part thereof, as the case may be, may be deemed to be the income of the assessee for such financial year Provided that, notwithstanding anything contained in any other provision of this Act, such unexplained expenditure which is deemed to be the income of the assessee shall not be allowed as a deduction under any head of income." The appellant fails to provide balance sheet, profit and loss account, bills/vouchers, bank statement of the parties through whom the assessee has made purchases. The appellant has not provided the mode of transport and details of the transportation of the goods purchased. The genuineness and cred....
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....to us Not provided to Us 27.03.22 10. Referring to the above, he pointed out that all the deficiencies noted by the AO with respect to the parties from whom purchases was made by the assessee was disallowed, was clearly reflected as being non-existent. By way of the impugned chart, Ld. Counsel for the assessee contended that the chart in a summery manner clearly pointed out the falsity in the findings of the AO and the CIT(A), reflecting the fact of all documents noted by the authorities below as having been not furnished by the assessee, to have duly furnished during assessment proceedings itself. Thereafter, he drew our attention to the various letters filed during assessment proceedings and reflected in the chart above through which the above documents were filed, which was placed before us in the paper book. He drew our attention to the letter filed by the assessee dated 27.03.2022 placed at paper book page nos. 312 to 342, through which, all bills & Lorry receipts of the purchases made were furnished, the confirmations of the parties through whom purchases made was furnished, the annual accounts of most of the parties was furnished as also the tax audit reports, bank ....
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....dgements of Notice dated 08.09.2022 349-355 18. Written reply 20.09.2022 356-359 19. Notice u/s 250 of the Income Tax Act, 1961 dated 28.03.2025 360-361 20. e-Proceedings Response Acknowledgements of Notice u/s 250 dated 28.03.2025 362-380 21. Notice u/s 250 of the Income Tax Act, 1961 dated 10.10.2025 381-384 22. Written submissions before the CIT(A) dated 20.04.2025 with Annexure reg. details of documents uploaded in case of nine suppliers 385-408 23. Documents uploaded relating to Ventura Metal and Alloys consisting of confirmation, Ledger account, copy of Return of Income with computation statement, Annual Accounts, Bank statement of supplier, Sales Invoice, e-way bills, freight bills etc. 409-706 24. Documents uploaded relating to Hindustan Metal Corp. consisting of confirmation, Ledger account, copy of Return of Income with computation statement, Annual Accounts,Sales Invoices, e-way bills, freight bills etc. 707-814A 25. Documents uploaded relating to Pioneer Overseas consisting of confirmation, Ledger account, copy of Return of Income with computation statement, Sales Invoices and freight bills etc. ....
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.... register, * details of bank accounts, * partywise details of purchases, * creditors details alongwith their name, address and PAN number and had also stated the fact of having done trading of ferrous and non-ferrous metals in its proprietorship concerned M/s. Kamdhenu Metal and Alloys. 12. With respect to the nine parties from whom purchase made was found to be bogus he contended that the following was filed * their PAN * mode of payment made to them * copy of sales register and creditor's ledger, * confirmations, * ledger account, * copy of return of income, * computation statement, * annual accounts, * bank statements of suppliers, * sales invoices of every bills, * freight bills etc. 13. Ld. Counsel for the assessee contended that the orders passed, therefore, by the authorities below, were grossly unjustified finding the assessee to have filed no evidence of purchases made. 14. Ld. DR, before us, was unable to counter the facts pointed out by the Ld. Counsel for the assessee as above, though, he supported the orders of the Ld. CIT(A). 15....