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2022 (8) TMI 447 - AT - Income TaxReopening of assessment u/s 147 - Addition u/s 68 - investigation wing has identified the penultimate bank accounts maintained in the Central Bank of India through which it reached the beneficiary account. One such account with the Central Bank of India belongs to MCPL and the beneficiary being the assessee company - HELD THAT:- We observe from the record that assessee has placed purchase order with MCPL for purchase of Automation PLC and the quoted price of ₹.10.80 crores. As per the terms of the purchase order assessee has to make an advance payment of ₹.10.8 crores which was made promptly. It is brought to our notice the party was not able to deliver the material within the stipulated time and accordingly, assessee has cancelled the purchase order and demanded back the advance money paid in Financial Year 2007-08. MCPL had returned ₹.8.54 crores out of the advance payment and out of balance assessee had received ₹.1.6 crores from them and assessee is still to recover ₹.2.26 crores which is still pending. These facts were brought to notice of the Assessing Officer and Assessing Officer rejected the same and proceeded to make the additions merely relying on the investigation report without any independent application of mind and further, he applied suspicion and preponderance of probability and proceeded to make additions invoking provisions of section 68 - Since the facts are very clear that assessee has received its own money from the defaulted supplier and may be the supplier having an account with Central Bank of India it does not mean that the transactions can become doubtful. We are in agreement with the findings of the Ld.CIT(A) and accordingly, we deem it fit and proper not to interfere with the findings of the CIT(A). Accordingly, grounds raised by the revenue are dismissed.
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