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TMI Blog2017 (9) TMI 1342X X X X Extracts X X X X X X X X Extracts X X X X ..... tions sustained by Ld CIT(A). 2. The assessee is engaged in the business of building construction. The assessing officer completed the original assessment u/s 143(3) of the Act on 29- 12-2009. The assessee challenged the assessment order before Ld CIT(A) and the AO gave effect to the order passed by Ld CIT(A). Subsequently he reopened the assessment by issuing notice u/s 148 of the Act and completed the assessment by making various additions. The assessee got partial relief before Ld CIT(A). Aggrieved by the order passed by Ld CIT(A), both the parties have filed these appeals before us. 3. In the appeal filed by the assessee, the validity of reopening of assessment is being questioned. The case of the assessee is that the AO had received ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat the assessing officer has given the list of payments, which would attract the TDS provisions, in the assessment order. The Ld A.R submitted that the assessee has explained the details of each and every payment in its letter dated 04-12-2012 and explained as to how the TDS provisions will not be attracted. He submitted that the payment includes purchases of goods also. However, the tax authorities have simply made the addition without considering the explanations given by the assessee. 7. We have heard Ld D.R on this issue. We notice that copy of the letter dated 04-12-2012 addressed to the AO is placed at page 22 of the paper book. A perusal of the same would show that the assessee had explained the nature of every payment. We notice t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . 2,52,45,182/- as purchases. While giving the details of purchases, the assessee had shown a sum of Rs. 11,24,784/- as miscellaneous purchases. The AO disallowed the same by observing that the assessee has failed to furnish relevant details. The Ld CIT(A) sustained disallowance to the extent of 15% and allowed the remaining amount. The assessee is challenging the addition sustained by Ld CIT(A) to the extent of 15% and the revenue is challenging the relief granted by Ld CIT(A). 11. The Ld A.R submitted that the assessing officer had asked the details of purchase under broad categories and accordingly the assessee grouped the purchases and shown remaining amount as miscellaneous purchases. He submitted that the assessee has clearly explain ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e list of sundry creditors that a sum of Rs. 3,26,019/- was shown as payable to the above said party. The AO obtained confirmation letter from the above said party, wherein it was confirmed that it has effected sales of Rs. 1,19,562/- only and the payments has also been received. Accordingly it was showing nil balance. Hence the AO added the above said sum of Rs. 3,26,019/- as bogus purchases. It is pertinent to note that the assessee had explained the difference in its letter dated 31-12-2012 that the purchases made from some other party was wrongly credited to the account of M/s Parasprabhu Grani Marmo P Ltd. It was submitted that the same was rectified in the succeeding year. But the AO did not consider those explanations and accordingly ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rd the parties on this issue. It is a fact that the assessee has accounted purchases to the tune of Rs. 15,87,580/- only, while the supplier has confirmed purchase to the tune of Rs. 17,41,556/-. Since the assessee has accounted lesser amount and did not claim the difference as expenditure, the question of unexplained expenditure does not arise here. In any case, the assessee has shown that the difference has been accounted in the succeeding year. Hence we are of the view that the Ld CIT(A) was justified in deleting this addition also. 19. The next issue contested by the revenue relates to the relief granted by Ld CIT(A) in respect of unexplained purchases. We have already dealt with the same in the earlier paragraphs. 20. The next issue ..... X X X X Extracts X X X X X X X X Extracts X X X X
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