TMI Blog2017 (7) TMI 957X X X X Extracts X X X X X X X X Extracts X X X X ..... credits. In the present case, the concerned transactions were only of supply of material and, therefore, provisions of Section 68 of the Act were not applicable. Further the trade creditors in the earlier years i.e. assessment years 2007-08 and 2008-09 stood accepted in scrutiny assessments. Thus, the genuineness of expenses under consideration could not be doubted. - Decided against revenue - ITA No. 72 of 2017 - - - Dated:- 12-7-2017 - MR. AJAY KUMAR MITTAL AND MR. AMIT RAWAL, JJ. For The Appellant : Mr. Denesh Goyal, Senior Standing Counsel ORDER Ajay Kumar Mittal, J. 1. The appellant-revenue has filed the instant appeal under Section 260A of the Income Tax Act, 1961 (in short, the Act ) against the order dat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 540/- was filed by him. The case was selected for scrutiny and the assessment was made under Section 143(3) of the Act. During the course of assessment proceedings, on examination of books of account vis- -vis balance sheet filed by the assessee, it was seen that he had shown a number of sundry creditors against registration number of the vehicles. When enquired, it was submitted by the assessee that he had purchased crusher through these vehicles on credit during the month of February and March, 2009. The amount shown against each vehicle numbers in the balance sheet was on account of Freight, Octroi and carriage as on 31.03.2009. The assessee was asked to furnish copies of account of all the above creditors mentioned in the balance sheet ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der, the assessee filed appeal before the Tribunal. Vide order dated 23.06.2016, Annexure A.3, the Tribunal allowed the appeal holding that the provisions of Section 68 of the Act could be invoked in case some amount was received by an assessee. In the present case, the concerned transactions were only of supply of material and, therefore, provisions of Section 68 of the Act were not applicable. It was further held that trade creditors in the earlier years stood accepted in scrutiny assessments. Thus, the genuineness of the expenses under consideration could not be doubted. Hence the instant appeal by the appellant-revenue. 3. We have heard learned counsel for the appellant-revenue. 4. A perusal of the order passed by the Tribunal sho ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ceived material for the construction of the road. The amounts in question represented purchases made on credits. The provisions of Section 68 of the Act are clearly not attracted to amount representing purchases made on credits, as is also held in CIT Vs. Pancham Dass Jain , 205 CTR 444 (All). The assessee raised this issue by way of written submissions (APB 37 to 160, relevant portion at para-5, on page 43) dated 10.05.2014 filed before the CIT(A). The ld. CIT(A) has, however, not addressed this grievance at all and merely upheld the addition made under Section 68 of the Act. On behalf of the assessee, a comparative chart of net profit rate of the assessee for the assessment years 2005-06 to 2011-2012 has been filed before us. In the earl ..... X X X X Extracts X X X X X X X X Extracts X X X X
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