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2017 (9) TMI 1400 - ITAT DELHIBogus purchases addition - CIT (A) deleted the addition on the ground that when the said expenditure is embedded in the work-in-progress, the same will be considered for computing the income of the assessee as per POC method - Held that:- From the totality of the facts and circumstances and the orders passed by AO in AY 2011-12, it is apparently clear that though the expenditure claimed by the assessee does not have any bearing on its income / profit during AY 2011-12 as the same have been accounted for as “work-in-progress”, but the same will certainly effect the income of the assessee in the next assessment year as well as at the conclusion of project. Though the AO has made a discreet enquiry through Inspector as to the existence of the firm from whom the assessee alleged to have purchased the raw material, but at the same time AO categorically recorded the observations that the assessee has failed to produce such parties inspite of repeated opportunities given to them but no such adequate opportunity allegedly provided by the AO to the assessee is visible on the record, particularly when examined in the light of the fact that ld. CIT (A) has categorically mentioned in the impugned order that the assessee has filed all the requisite evidences again without highlighting the said piece of evidence. Even the assessee has not been confronted with the report of Income-tax Inspector dated 23.11.2012 & 26.02.2013, relied upon by the AO. So, the impugned order is liable to be set aside to remand the same to the file of the AO for de novo assessment who shall provide adequate opportunity to the assessee to prove the alleged bogus purchases. - Decided in favour of revenue for statistical purposes.
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