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2019 (12) TMI 313 - AT - Income TaxBogus purchases - no details in respect of dispatch of goods are available - assessee claimed that delivery has been taken by Hand - huge quantify of computer peripherals like routers, modems, switches, converters - HELD THAT:- When entire purchases have been duly debited in the profit & loss account matched with sale proceeds and account books have not been rejected then it is difficult to agree with the reasoning given by the CIT (A) that the purchases cannot be believed. Moreover, when a company has stated to have purchased the computer peripherals etc. which are stated to have been transported/dispatched by hand, the same cannot be declared bogus on the ground that the same were required to be transported by way of mode of vehicular transport. Because it is a matter of common knowledge that many of the companies make available purchases made from them at the doorstep of the buyers. CIT (A) has not decided the issue on the basis of evidence led by the assessee rather decided the issue on the basis of presumptions which is not sustainable in the eyes of law. So, in the interest of justice, we deem it necessary to remit the case back to the ld. CIT (A) to decide afresh after examining the entire evidence led by assessee by providing further opportunity of being heard. Addition u/s 14A r.w.r 8D - HELD THAT:- AO has not recorded his dissatisfaction as to the claim of the assessee that no expenditure has been incurred to earn the dividend income; that no fresh investment has been made by the appellant during the year under assessment; that interest taken for computing the disallowance u/s 8D i.e. ₹ 66,500/- has not been paid towards any loan rather the said interest payment relates to interest paid on late deposit of TDS on salary, but despite all these findings, ld. CIT (A) proceeded to restrict the additions in AYs 2007-08, 2008-09, 2009-10 & 2010-11 respectively by applying the Rule 8D mechanically. There are inherent contradictions in the impugned order passed by the ld. CIT(A), so, in these circumstances, we are of the considered view that the issue is required to be remitted back to the ld. CIT (A) to decide afresh after examining the entire details and pleadings made by the assessee that no expenditure has been incurred, nor any fresh investment has been made and that no interest payment has been made on the amount of investment during the years under assessment after providing opportunity of being heard to the assessee.
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