Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2015 (1) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2015 (1) TMI 792 - AT - Income TaxBogus purchases - CIT(A) deleted the addition accepting additional evidence - Held that:- The ld. CIT(A) required the assessee to substantiate the purchases by proving through mode of delivery and transport receipts. He also required the assessee to furnish the stock register to examine, whether raw material purchased has been consumed or not. He also asked the assessee to produce bank statement to see whether any cash has been withdrawn after making the payment through cheque for the purchases made from these parties. On perusal and examination of these records, he found that, firstly no cash has been withdrawn from the bank account for making the cash payment to the alleged purchasers to show that it was for the purposes of accommodation entries; secondly, the purchase bills were duly supported by GR Nos. and mode of delivery and; lastly, stock register reflected the consumption of material bought by the assessee. On these three counts, correctly held that the purchases cannot be said to be non-genuine. Deletion of addition on account of bogus purchases by the ld. CIT(A) is factually correct and no interference is called for. - Decided against revenue. Regarding violation of Rule 46A as raised by the department, we are of the opinion that, if the first appellate authority in exercise of his powers has directed the assessee to produce any evidence, information or material not produced or considered by the AO, then there is no violation of Rule 46A. The Rule 46A provides that, when the assessee on its own file any additional evidence, then the ld. CIT(A) has to follow the provisions of the said Rule. There is no fetter on the powers of the first appellate authority to call for any fresh information or materials for adjudicating the lis before him. Thus, in this case, there is no violation of Rule 46A, as the additional evidences were filed on the direction of the ld. CIT(A). - Decided against revenue.
|