2025 (2) TMI 1739

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....e Ld.CIT(A) in confirming the addition relating to alleged bogus purchases of Rs. 63,86,750/- made from M/s. Sai Traders. 2. The facts are stated in brief. The assessee is the proprietor of M/s. Chokhani Pharma Vet, deals in the business of animal feed supplements. He filed his original return of income for the year under consideration on 30-09-2011 declaring a total income of Rs. 20,39,370/-. Subsequently, the AO received information that the assessee has made purchases from a concern, named, M/s. Sai Traders, a proprietary concern of Shri Rajendra Drolia and his TIN number has been cancelled by the VAT Department. It was also informed by the ADIT that Shri Rajendra Drolia is a hawala operator, having no genuineness business and he was ....

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....ns before the AO. In this regard, he invited our attention to the copies of delivery challans placed in the paper book. He further submitted that the goods were supplied by M/s. Sai Traders directly to the godown of the assessee and hence, the assessee did not incur any transport charges. He submitted that the assessee has reconciled the impugned purchases with the corresponding sales. He further submitted that the VAT Department has accepted the sales turnover reported by the assessee. 5. The Ld.AR submitted that the AO has reopened the assessment on the main reason that the TIN number of M/s. Sai Traders has been cancelled by the Sales Tax Department. He submitted a copy of appellate order dt. 15-06-2018 passed in the hands of M/s. Sai....

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....re is merit in the submissions made by the Ld.AR. We notice that the AO has reopened the assessment on the basis of information given by the ADIT that the TIN number of M/s. Sai Traders has been cancelled by the Sales Tax Department. However, the assessee has furnished a copy of the appellate order passed in the hands of M/s. Sai Traders, which was passed after reopening of the assessment, in order to show that the TIN number of M/s. Sai Traders has not been cancelled. Be that as it may, we notice that the assessee has furnished all the documents to prove the purchases made from M/s Sai Traders. With regard to the allegation of non-availability of bills for transport charges, we notice that the assessee has explained that it did not incur a....