TaxTMI 
TaxTMI 
2026 (4) TMI 336
X X X X Extracts X X X X
X X X X Extracts X X X X
....ismissing the appeal ex parte. Such dismissal is unjustified, unwarranted, and deserves to be set aside. 2) For that in the facts and circumstances of the case, the addition of Rs.36,14,061 made on account of alleged purchase is wholly erroneous, unjustified, and liable to be deleted. 3) For that the reasons recorded for reopening do not satisfy the settled judicial principles governing Section 147 of the Act, and accordingly, both the reopening as well as the consequent assessment order are bad in law and deserve to be quashed. 4) For that the notice issued under Section 148 of the Act, as well as the approval obtained for reopening, are invalid, bad in law, and without jurisdiction, rendering the entire proceedings and the consequent assessment order void ab initio. 5) For the approval us 151 of the Act is bad in law and hence the approval, the reopening notices and consequent assessment order void ab initio. 6) For that in the facts and circumstances of the case the Learned Commissioner of Income Tax Appeals erred in upholding that the material based on which the Ld Assessment Officer passed the assessment order are collected behind t....
X X X X Extracts X X X X
X X X X Extracts X X X X
....he competent authority. Accordingly, notice u/s 148 of the Act was issued on 29.03.2021 which was duly served to the assessee. Subsequently, further notice u/s 142(1) of the Act dated 10.01.2022 was issued to the assessee for asking raised details. In response to the notice assessee furnished submission which were perused the submissions filed by the assessee was considered and the AO concluded that there was no physical delivery of the goods and it was remained unproved and further the assessee was unable to provide any corroborative evidence which can substantiate that the purchases were not bogus and purchase and physical delivery of goods was made. He further observed that as per submission dated 11.02.2022 it was stated that the assessee would provide copy of VAT return shortly but till date there was no submission of the VAT return. Accordingly, the AO held that the purchase made of Rs. 36,14,061/- remains unexplained and were treated as bogus purchase. Accordingly, the AO made addition u/s 68 of the Act and completed the assessment on 16.03.2022. 3. Aggrieved from the above order, the assessee filed appeal before the Ld. CIT(A). The Ld. CIT(A) issued various notices on di....
X X X X Extracts X X X X
X X X X Extracts X X X X
....y mentioning the incident of fire to your office. v) A copy of VAT return for F.Y. 2015-16. vi) You have claimed in your reply that physical delivery of material has undertaken. In this regard, you are required to furnish the corroborating evidence (apart from e-invoices and copy of ledger) proving physical delivery of material vii) It may be noted that you have not furnished the complete communication details of M/s. Bhagwati Traders with whom trading activities have undertaken, you are required to furnish correct communication details including email id and contact no. of M/s. Bhagwati Traders 7 In response to the same, the assessee has submitted vide his reply on 15.02.2022 that- "We hereby furnish following information as required by you 1. A copy of FIR filed by Fire Department against the owners of the building is attached herewith. This was the news of almost all newspapers for atleast a week. 2. A copy of new letter by Times of India is attached herewith. 3. We have not sought any insurance claim since office was not insured. 4. Fire department FIR copy as attached as per point no. 1.5. We have....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ts. Therefore, relying on the judgment of Hon'ble Odisha High Court in the case of Siksha "O" Anusandhan Vs. CIT reported in 363 ITR 112 in which it has been held as under: "liability is well settled once the material available on record, the appeal court should have disposed of the case on merits taking those materials in consideration and there is no need to direct remand." 8. Considering the above judgment, I am taking up the case for adjudication. Here the dispute raised by the revenue, there was bogus purchase made by the assessee on the basis of survey statement recorded u/s 133A of the Act. Further, the assessee had recorded ethe entire transactions in his books of accounts and payments were made through banking channels. Undoubtedly, when the purchase are made the stock gets entry in the books of accounts, stock gets increase and the assessee has recorded the purchase in books of accounts and accordingly the stock got increased. The AO has never doubted on the books maintained by the assessee and he has accepted the financial statement prepared by the assessee on the basis of books of accounts. However, in this case, the AO has made addition u/s 68 of the Act if....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... their books of accounts and the payments made to M/s. Chakradhari Industries were also from and out of the books of accounts with explained sources and, therefore, the source of expenditure was also found. That apart, the source of expenditure was also fully explained and, therefore, the addition made by the Assessing Officer under section 69C of the Act cannot be sustained. Section 69C of the Act states that 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 52 [Assessing) Officer, satisfactory, the amount covered by such expenditure or part thereof, as the case made be, may be deemed to be the income of the assessee for such financial year. It is evidently clear that the said section 69C would stand attracted if the source of expenditure is not satisfactorily explained by the assessee before the Assessing Officer and only then it will be deemed to be income of the assessee. The Assessing Officer alleged the purchases to be bogus However, the Assessing Officer did not dispute the source of expenditure to be n....