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2023 (6) TMI 429 - ITAT COCHINDisallowance of paddy purchase - purchases from Societies and Samathies - HELD THAT:- The assessee, in the instant case, has, despite abundant opportunity, abysmally failed to prove the incurring of the impugned expenditure, with, rather, there being material on record disproving the same. It is under the circumstances not considered necessary to travel to the question as to whether the same is merited u/s. 40A(3) as well. The same, even as noted by the ld. CIT(A), does not in fact arise for consideration when the expenditure itself is held by the Revenue as not incurred; it being a non-obstante clause providing further stipulation for allowance of an expenditure incurred in cash or other than by way of legal tender. A bogus purchase implies no purchase, while verification w.r.t. s. 40A(3) necessarily implies a seller and a purchaser, i.e., a payer and payee, both of whom coalesce into one in case of a bogus claim. AO, as indeed the Tribunal, referring thereto is only as, without prejudice. The same, not unprecedented, is misplaced in the facts of the case where the basic record is missing; the assessee admitting to the sourcing details from Samathies – who are stated to be not maintaining the records, where the supplier is abroad and/or does not have agricultural land. Continuing further, in this view of the matter, the partrelief allowed by the ld. CIT(A), being contested by the assessee per it’s CO, also fails. The same, it may be appreciated, forming part of the question arising for determination in appeal, does not entail any separate examination and adjudication. Decided in favour of revenue.
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