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2015 (11) TMI 1362 - ITAT MUMBAI

2015 (11) TMI 1362 - ITAT MUMBAI - TMI - Disallowance of 10% of the value of purchases - the suppliers did not respond to the notices issued by the AO - CIT(A) deleted the addition - Held that:- CIT(A) has followed the decision rendered in the case of Nikunj Eximp Enterprises Pvt Ltd (2013 (1) TMI 88 - BOMBAY HIGH COURT) to grant relief in respect of this addition wherein held that merely because the suppliers have not appeared before the AO or the CIT(A), one cannot conclude that the purchases .....

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ed the addition - Held that:- We notice that the assessee has furnished the details of labour charges before the AO, but the assessing officer did not examine the same with the reasoning that the same was filed at the fag end of the assessment. Before Ld CIT(A) has submitted that the assessee had deducted tax at source against those payments. During the course of hearing, the Ld A.R carried us through the various details furnished before the AO. Thus, we notice that the assessee has furnished th .....

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r has made this addition on surmises and conjectures. The Ld A.R submitted before us that the assessee had provided the addresses of all the sundry creditors and the assessee could not furnish the confirmation letters only for want of time. Accordingly he contended that the assessing officer was not justified in drawing adverse inferences without finding fault with the account books of the assessee. We find merit in the said contentions. Admittedly, the assessee was not given sufficient time to .....

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Dated:- 6-10-2015 - B. R. Baskaran, AM And Pawan singh, JM For the Appellant : Shri K Mohandas For the Respondent : Shri Nishit Gandhi ORDER Per B R Baskaran, AM The revenue has filed this appeal challenging the order dated 21.04.2013 passed by Ld CIT(A)-19, Mumbai and it relates to the assessment year 2006-07. 2. The revenue is aggrieved by the decision of Ld CIT(A) in deleting the following additions made by the AO. (a) Disallowance of 10% of purchases (b) Disallowance of 10% of labour charge .....

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rved on one person. Hence the AO came to the conclusion that the purchases claimed by the assessee stands unproved to the extent of 10%. Accordingly he disallowed 10% of the purchases value. The AO also called for details of labour charges claimed by the assessee. According to the AO, the assessee furnished the details at the fag end of the assessment proceedings and hence he disallowed 10% of the labour charges also. The AO further asked the assessee to get confirmation letters from three of it .....

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sued by the AO. We notice that the Ld CIT(A) has followed the decision rendered by the Hon'ble Bombay High Court in the case of Nikunj Eximp Enterprises Pvt Ltd (ITA No.5604 of 2010 dated 17.12.2012) to grant relief in respect of this addition. In the case of Nikunj Eximpt Enterprises P Ltd (supra), the Hon'ble Bombay High Court has held that merely because the suppliers have not appeared before the AO or the CIT(A), one cannot conclude that the purchases were not made by the respondent .....

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etails of labour charges before the AO, but the assessing officer did not examine the same with the reasoning that the same was filed at the fag end of the assessment. Before Ld CIT(A) has submitted that the assessee had deducted tax at source against those payments. During the course of hearing, the Ld A.R carried us through the various details furnished before the AO. Thus, we notice that the assessee has furnished the relevant details, but the assessing officer has made the impugned disallowa .....

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