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2019 (10) TMI 396 - AT - Income TaxAssessment u/s 153A - Addition u/s 69C on account of bogus purchases - AO also taxed such disallowances u/s 115BBE - HELD THAT:- Addition made by the AO in the assessment without any reference to incriminating seized material was considered by the Hon'ble Rajasthan High Court in the case of Jai Steel Ltd. vs ACIT [2013 (6) TMI 161 - RAJASTHAN HIGH COURT] wherein held in case of completed assessment, no addition can be made if no incriminating seized material is found during the course of search. CIT(A) has also considered the judgement of Hon'ble Delhi High Court in the case of Kabul Chawala vs ACIT [2015 (9) TMI 80 - DELHI HIGH COURT] and other related judgements which are specifically mentioned in his order and he had rightly concluded that the addition made by the AO without any reference to the seized material is not legally sustainable. Thus this issue was rightly decided by the ld. CIT(A) in favour of the assessee. AO had made addition by merely relying on the statement of one Shri Rajendra Jain which cannot be termed as an incriminating material as said statement should have related to incriminating material found during the course of search or statement must be made relatable to material by subsequent enquiry/ investigation. Addition @ 25% of alleged bogus purchases - In the present case, no opportunity to cross examine said Shri Rajendra Jain was provided by the Revenue authorities. Thus it was rightly held that not providing cross examination tantamount to denial of natural justice and does vitiate the assessment. CIT(A) has also considered that the AO himself had recorded in the assessment order that letter was issued to Custom Authorities SEZ-II, Sitapura Industrial Area, Jaipur to verify the said purchases and the AO has recorded a finding that SEZ authorities have confirmed that said purchases are genuine as duly recorded in their records. This itself cast a doubt on AO’s conclusion that purchases made by the assessee were bogus. More particularly, when it is certificate from another Govt. Agency by certifying the genuineness of the purchases and it tilts preponderance of probability in favour of the assessee. It is pertinent to mention that the ld. CIT(A) has explicitly dealt with the issue and deleted the addition made by the AO giving full justification to the issue in question and we find no reason to interfere with the order of the ld. CIT(A) on the issue raised by the Revenue Delayed employees’s contribution towards PF and ESIC - HELD THAT:- Employee’s contribution towards GPF, CPF and ESI deposited by the assessee on or before the due date of filing the return u/s 139, though beyond the due dates as given under the respective Acts, cannot be disallowed u/s 43B or 36(1)(va). SEE CIT Vs. Jaipur Vidyut Vitran Nigam Ltd. [2014 (1) TMI 1085 - RAJASTHAN HIGH COURT]
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