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2015 (9) TMI 391 - PUNJAB & HARYANA HIGH COURT

2015 (9) TMI 391 - PUNJAB & HARYANA HIGH COURT - [2015] 378 ITR 609 (P&H) - Rejection to books of accounts - addition to income - AO disallowed the expenses with regard to the purchase of the material by the appellant - assessment also made under Section 68 - Held that:- A notice under Section 131 of the Act had been served upon M/s Rama Enterprises. We are informed that PAN numbers were called for and have now been produced. The vendors appear to have paid tax. The effect thereof would have to .....

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t the appellant had received the material corresponding to the purchases made from the vendors. It was found for instance that the existence of the vendors stood confirmed by the Excise & Taxation Officer. The assessee would rely upon the PAN numbers which were now produced during the course of these appeals. The excise record was also analysed by the CIT(Appeals). The CIT(Appeals) undertook a detailed analysis in coming to this conclusion. However, some of the crucial aspects have not been cons .....

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, the effect of the finding that the payments by the assessee to its vendors and of M/s Maa Durga Trading Company having withdrawn the same is not dealt with satisfactorily. Merely because M/s Maa Durga Trading Company withdrew the amount which was paid by the assessee to its vendors would not lead to the conclusion that the transactions between the assessee and the vendors were fictitious. Similarly, the Tribunal noted that the confirmation receipts of the said supplies were signed by different .....

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ves. However, that is not the only question in these proceedings. Thus the impugned order is set-aside and the matter is remanded to the Income Tax Appellate Tribunal for fresh decision - Decided in favour of assessee for statistical purposes. - ITA No. 205 of 2014, ITA No. 423 of 2014 - Dated:- 4-9-2015 - S. J. Vazifdar, ACJ And G. S. Sandhawalia, JJ. For the Appellant : Mr. Sanjay Bansal, Senior Advocate with Mr. Rajiv Sharma, Advocate For the Respondent : Mr. Tejinder Joshi, Advocate ORDER S. .....

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appreciation of evidence are involved, it would be appropriate that the same are decided by the authorities under the Income Tax Act, 1961 (hereafter referred to as the Act ). We are informed that the Tribunal itself had remanded a similar matter to the Assessing Officer. 3. In ITA No. 205 of 2014, the appellant contends that the following questions of law arise for consideration:- A. Whether the order passed by the Hon ble Tribunal is perverse in nature as the Tribunal has passed the impugned .....

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order passed by the Hon ble Tribunal is perverse in nature as the Tribunal has passed the impugned order without appreciating the evidences/pleadings and factual findings of CIT(A) and in contravention of the provisions of law? B. Whether Hon ble Tribunal has erred in reversing the well reasoned order of learned CIT(A) and has erred in law in disallowing purchases of ₹ 1,14,82,688/-? 5. The Assessing Officer rejected the books of account and disallowed the expenses with regard to the purc .....

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8 of the Act. 6. The Commissioner of Income Tax (Appeals) upheld the order of the Assessing Officer rejecting the books of account but sustained the addition of ₹ 10,00,000/- on account of the rejection of books. The CIT (Appeals) held that the provisions of Section 68 were not applicable to sundry creditors. The CIT (Appeals) also held that the purchases from the three parties were genuine. The orders of the Assessing Officer in this regard were set-aside. The Assessee and the Revenue, th .....

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ntities i.e. M/s Rama Enterprises, M/s AGS Enterprises and M/s Royal Industries Corporation (we will for convenience hereafter referred to them collectively as the vendors ). The Assessing Officer made the enquiries from the Excise & Taxation Officercum- Assessing Authority on the basis of the TIN s Numbers shown in the purchase invoices. It was found that the purchases had been made by the vendors and thereafter in turn sold to the appellant. The appellant paid the amounts which were credit .....

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hases had been made by the vendors from M/s Maa Durga Trading Company. However, the enquiries made by the Assessing Officer revealed that M/s Maa Durga Trading Company did not exist at any of the given addresses and that the Excise & Taxation Authorities reported that the purchases of M/s Maa Durga Trading Company were not found to be genuine. It is important to note that what was found not to be genuine were the purchases made by M/s Maa Durga Trading Company. It is difficult to ascertain w .....

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es by the vendors to the assessee. This evidence would be relevant while considering whether the purchases by the assessee were genuine or not. 9. By an order dated 26.11.2014, a Division Bench of this Court noted that a notice under Section 131 of the Act had been served upon M/s Rama Enterprises. We are informed that PAN numbers were called for and have now been produced. The vendors appear to have paid tax. The effect thereof would have to be considered. It would now be possible to ascertain .....

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he purchases made from the vendors. It was found for instance that the existence of the vendors stood confirmed by the Excise & Taxation Officer. The assessee would rely upon the PAN numbers which were now produced during the course of these appeals. The excise record was also analysed by the CIT(Appeals). The CIT(Appeals) undertook a detailed analysis in coming to this conclusion. However, some of the crucial aspects have not been considered by the Tribunal. The Tribunal for instance held t .....

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