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2015 (2) TMI 109 - AT - Income TaxBogus purchases - sham transactions - CIT(A) partly deleted addition - Held that:- Simple confirmation on the ledger account and confirmation of sales to the parties in the absence of any filing of return of income tax or sales tax return and without having any PAN/CST/PST numbers and the said parties having no books of account or any explanation offered or any evidence of having consumed the goods by the assessee, the purchases cannot be said to be proved especially in the absence of any consumption shown by the assessee on the alleged purchases debited in the books of account. It will be too early to conclude that the said purchases are sham in the absence of any verification or examination of M/s Rajiv Electric Trading Co. and M/s Krishna Hardware & Mill Store and their books of account and records and whether at all genuine purchases have been made or not. Therefore, in the interest of justice, matter is set aside to the file of A.O. to find the genuineness of the purchases/genuineness of the parties from whom the purchases are claimed to have been made. - Decided in favour of asseessee and revenue for statistical purposes. Disallowance on account of ESI and EPF - delay in payment - CIT(A) deleted the addition - Held that:- No infirmity in the order of ld. CIT(A) as the contributions by employees are regulated by sections 2(24)(x) r.w.s. 36(1)(va) of I.T. Act than under section 43B of I.T. Act. But in the light of decision of ITAT, Delhi “C” Bench in the case of Addl. CIT vs. Vestas RRB India Limited (2004 (5) TMI 245 - ITAT DELHI-C ) one of the issue in that case being of addition under section 2(24)(x) of IT Act, the deposit of employees contribution to PF etc. in this case as in that case being late, but before the due date of return, the same is eligible as deduction as per the said decision. Thus, the assessee has rightly been allowed relief of ₹ 1,49,429/-. - Decided in favour of assessee.
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