TMI Blog2014 (11) TMI 1016X X X X Extracts X X X X X X X X Extracts X X X X ..... r there was any immediate cash withdrawal from their account. No such exercise has been done. The Ld. CIT(A) has also confirmed the addition made by the AO by going on the suspicion and the belief that the suppliers of the assessee are Hawala traders. We also find that no effort has been made to verify the work done by the assessee from the Municipal Corporation of Greater Mumbai. We agree with the submissions of the Ld. Counsel that if there were no purchases, the assessee would not have been in a position to complete the civil work. On civil contract receipts of ₹ 32.05 crores, the assessee has shown gross profit at 14.2% and net profit at 9.72%.Even if for the sake of argument, the books of accounts are rejected, the profit has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in upholding the addition of ₹ 4,98,80,892/- made by the AO u/s. 69C of the Act by treating the purchases as not genuine. 3. The assessee is a partnership firm carrying out the business of civil contracts, civil infrastructure, such as drainage and road repairs maintenance mainly with Municipal Corporation of Greater Mumbai. The return for the year was filed on 28.9.2010 declaring total income of ₹ 2,99,79,680/-. The return was selected for scrutiny assessment and statutory notices were accordingly issued and served on the assessee. 3.1. During the course of the assessment proceedings, the Assessing Officer observed that the assessee has shown contract receipts at ₹ 32.05 crores against which total purchases an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 93V 2501019 5. CNS Trade Links Pvt. Ltd. 27750532987V 274685 6. Siddhi Enterprises 27860154093V 4001487 7. Shantinath Corporation 27520680408V 3809804 8. Tulsiani Rading Pvt. Ltd. 27440688212V 10610755 9. Rohit Enterprises 27020680974V 4645143 10. Samarth Enterprises 27560694451V 2027551 11. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r Mumbai. It was further submitted that if the assessee had not purchased the goods, the assessee would not have been able to complete the work assigned and in turn would not have received the payment from the Government agencies i.e. Municipal Corporation of Greater Mumbai. On financials, the assessee stated that the gross profit rate offered by the assessee is approximately 14.2.% which is very much legitimate and reasonable. 4.1. After giving a thoughtful consideration to the facts and submissions of the assessee, the Ld. CIT(A) was not convinced as according to him, the assessee had failed to substantiate the claim of purchases of goods at site without submitting the delivery challans. The ratio analysis of the financials given by th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to have verified the payment details from the bank of the assessee and also from the bank of the suppliers to verify whether there was any immediate cash withdrawal from their account. No such exercise has been done. The Ld. CIT(A) has also confirmed the addition made by the AO by going on the suspicion and the belief that the suppliers of the assessee are Hawala traders. We also find that no effort has been made to verify the work done by the assessee from the Municipal Corporation of Greater Mumbai. We agree with the submissions of the Ld. Counsel that if there were no purchases, the assessee would not have been in a position to complete the civil work. 8.1. On civil contract receipts of ₹ 32.05 crores, the assessee has shown gro ..... X X X X Extracts X X X X X X X X Extracts X X X X
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