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2022 (11) TMI 1218 - ITAT KOLKATABogus purchases u/s 69C - receipt of information from DGIT(Inv.), Mumbai that the assessee company had received bogus entry in the form of purchases from three shell companies - CIT- A deleted the addition - HELD THAT:- CIT(A) has categorically discussed the evidences furnished by the assessee in respect of each of the party and has recorded that the assessee was maintaining proper books of accounts including all details such as stock register, bills and vouchers in respect of manufactured and traded goods and further that the assessee had furnished details of purchases together with quantity rate and value. The payments were made through banking channel. It is not the case of the Revenue that the assessee had made purchase out of his unaccounted money as the purchases were made through account payee cheque/banks. The sales also have not been doubted by the AO. Even, as observed above, the diamond being of very particular quality, weight, clarity etc. and in the facts and circumstances of the case have also not been doubted to be the purchase from grey market. In view of this, we do not find any infirmity in the order of the ld. CIT(A) Addition of unsecured loans and advances u/s 68 - CIT- A deleted the addition - HELD THAT:- We note that the ld. CIT(A) has given details of the documents furnished by the assessee in respect of each of the party and thereby has arrived at a conclusion that the assessee has duly established the identity and creditworthiness of the parties and genuineness of the transaction. Even the ld. CIT(A) has noted that subsequently the said loan has repaid by the assessee to the concerned parties. Since the CIT(A) has not only discussed in details the various evidences proving the identity, creditworthiness of the parties and genuineness of the transaction but also the fact that assessee has subsequently repaid the loan amount to the concerned parties and TDS was also deducted on the interest paid to the parties on such loan amount. In view of this, we do not find any reason to interfere with the order of the CIT(A) on the above issue also. This ground of the Revenue is also dismissed. Disallowance u/s 14A - Purpose of investment made - CIT- A deleted the addition - HELD THAT:- Investments were made by the assessee not for the purpose of earning of exempt income, rather the investment, in question, was made in immovable property, therefore, the provisions of section 14A were not attracted. CIT(A), therefore, rightly deleted the addition in respect of disallowance made by the AO in relation to the investment in immovable property. Therefore, there is no merit in this ground of the Revenue and the same is accordingly dismissed.
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