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2018 (2) TMI 1145 - AT - Income TaxAssessment u/s 153A - addition of bogus purchases of raw material - want of proper inquiry - Held that:- CIT-(A) noticed that proper enquiries have not been conducted by the Assessing Officer, however, rather than getting the enquiries done, he simply allowed the appeal of the assessee. In view of the facts and circumstances of the instant case, being more or less similar to the facts and circumstances in the case of Jansampark advertising and marketing private limited (2015 (3) TMI 410 - DELHI HIGH COURT), we feel it appropriate to restore the matter to the Ld. CIT-(A) for adjudicating afresh in accordance with law. The Ld. CIT-(A) will ensure that effective inquiries are made in the case. If required so, he may remand the matter to the Ld. Assessing Officer and carry out enquiry to ascertain delivery, transportation & consumption of goods. He may also examine bank account of the purchasing parties to find out, whether the assessee or its employees has withdrawn the money in cash from those accounts Unexplained receipt in the transactions with M/s Moon Buildtech Private Limited. - Held that:- CIT-(A) has mentioned that these flats continued to be reflected in the balance sheet of the assessee company, however, he has not mentioned, whether – the evidences relied upon by him in this regard are additional evidence. AO has also not been provided opportunity to rebut those evidences. If according to the Ld. CIT-(A), there was no sale of the flats to M/s MBPL, then he has not brought on record whether the money invested by MBPL was returned back by the assessee alongwith interest. Hon’ble Delhi High Court in the case of Jansampark Advertising and Marketing Private Limited (supra) has observed that in the event of AO failing to discharge its function properly, the obligation to conduct proper Inquiry on the facts were naturally shift to the door of the first appellate authority. Thus we feel it appropriate to restore the issue to the file of the Ld. CIT-(A), with the direction to carry out effective inquiries and decide the issue afresh Addition on account of scrap sales - Held that:- Since in the instant case, it is not clear, whether that assessee has debited the cost of construction in the profit and loss account or it has carried the cost of construction as work in progress for adjustment in subsequent years as expenditure. In case, the cost of construction has been carried as work in progress, in that situation the finding of the Assessing Officer would be logical as income from sale of the scrap is received/accrued in the instant assessment year, and, thus, assessee should have offered the receipt from sale of scrap as income in the year under consideration. Thus restore the matter to the file of the Ld. CIT-(A) to verify the fact that cost of construction has been claimed as expenditure in the year under consideration or not and adjudicate the issue accordingly
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