2025 (3) TMI 1737

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....O, for invoking the impugned proceedings. During the course of proceedings, the Ld. Counsel for the assessee submitted that the impugned grounds are not pressed. Accordingly, grounds of appeal nos. 1 to 4 are dismissed. 3. The next issue, that arises from ground of appeal nos. 5 and 6 is regarding an addition of Rs. 1,98,02,291/- made by the AO U/s 69C of the Act. The Ld. Counsel for the assessee submitted that, the assessee company is engaged in the business of providing house keeping and allied services like manpower, repair and maintenance, carpenter, electrician etc. The company is also engaged in the sale of products related to house keeping etc. During the year under consideration, the assessee had made purchases of Rs. 74,83,345/-....

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....contentions, in the light of material available on record. We have noted that in the decision of Cherry Hill (supra), the coordinate bench of this Tribunal has observed as under: ".....6. The Ground No.2 raised by the assessee is challenging the addition made on account of unverifiable purchases in the sum of Rs. 45,54,184/- u/s 69C of the Act. 7. We have heard the rival submissions and perused the material available on record. The assessee during the year made purchases from M/s Plyzone to the tune of Rs. 53,02,819/-. The ld. AO sought to examine the veracity of the said purchases by issuing notice u/s 133(6) of the Act to the said vendor after obtaining the name and address from the assessee. The said notice was returned....

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....t the VAT return showed purchases from Plyzone only to the tune of Rs. 7,48,635/- and, hence, he granted relief to the assessee only to that extent and confirmed the disallowance for the remaining portion of Rs. 45,54,184/- (Rs. 53,02,819/- (-) Rs. 7,48,635/-). 9. At the outset, we find that this addition cannot survive as it is made u/s 69C of the Act by the ld. AO. The provisions of section 69C of the Act could be made applicable only where a particular expenditure has been incurred by the assessee for which source is not satisfactorily explained by the assessee. In the instant case, the purchase made by the assessee had been duly accounted in its books and payments for the same had been duly made by account payee cheques and als....