TaxTMI 
TaxTMI 
2026 (4) TMI 1297
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....61 (hereinafter referred to as 'the Act') dated 31.05.2023 by the Assessing Officer, ITO, Ward-10(1), (hereinafter referred to as 'ld. AO'). 2. The issues to be decided in this appeal are as to whether the ld CIT(A) was justified in confirming the addition made u/s 69C of the Act in respect of purchases made from M/s. Mahavir Prasad Suresh Kumar (Rs. 13,24,76,193/- and M/s. Umesh Kumar Vivek Kumar (Rs. 13,81,75,159/-) in facts and circumstances of the instant case. The inter connected issue involved therein is as to whether the ld CIT(A) was justified in treating the sales made by assessee to M/s. Kalki Trading Company in the sum of Rs. 11,17,38,184/- and adding the same as unexplained cash credit u/s 68 of the Act in the facts and circu....
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.... company filed its return of income on 24.08.2022 declaring the same total income of Rs. 3,19,770/-. 4. The assessee is engaged in the purchase and sale of bullion and commodities like rice. During the year under consideration, the assessee company had purchased goods from M/s. Umesh Kumar Vivek Kumar (proprietor Vivek Gupta) of Rs. 13,81,75,159/- and from M/s. Mahavir Prasad Suresh Kumar (proprietor Shri Suresh Kumar) of Rs. 13,24,76,193/-. These transactions are evidenced by invoices, inward movement of goods in stock register and duly recorded in the books of account of the assessee by debiting the purchase account in the profit and loss account for which payments were made through regular banking channels through accounted source of ....
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....nished by the independent firm of Chartered Accountants. From the side of the assessee, the assessee filed the following documents before the ld AO :- a. copy of account of M/s. Umesh Kumar Vivek Kumar and M/s. Mahavir Prasad Suresh Kumar in the books of the assessee company. b. copies of purchase bills along with bilty on sample basis for purchase made from aforesaid two parties. c. extract of bank statement evidencing amounts paid to aforesaid two parties. d. copy of stock register wherein the transactions with aforesaid two parties are recorded. 5. With regard to observations made by the ld AO that the aforesaid two suppliers had not paid any VAT on the alleged sale of rice made to the assessee, it ....
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....;ble Supreme Court in the case of CIT Vs. Khader Khan Sons reported in 352 ITR 480. Further, the ld AR also submitted that the assessee had sought cross examination of Shri Ashok Kumar Gupta during the course of assessment proceedings and the parties who are departmental witnesses failed to appear on the date of cross examination before the ld AO. Hence, it was the departmental witness who had not complied to the cross-examination proceedings and assessee cannot be faulted at all and accordingly any statement recorded from those witnesses cannot be relied upon proving detrimental to the assessee. 6. Similar observations were made by both the sides with regard to sales made by the assessee to M/s. Kalki Trading Company in the sum of Rs. 1....
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.... of the assessee by making an addition of 100% of value of purchases from these two concerns at Rs 1,62,13,633/- as against Rs 32,42,726/- made by the ld. AO. This addition was confirmed by the ld. CIT(A) by stating that the addition has been made u/s 69C of the Act. 7. First of all, we find that the entire purchases made from these two concerns had been duly recorded in the books of accounts of the assessee company and payments made to them were through regular banking channels out of disclosed bank accounts of the assessee. The sources for making such payments are duly drawn from the books of accounts of the assessee and available bank balances. Once the purchase transactions are disclosed by the assessee and payments made thereo....