TMI Blog2017 (10) TMI 590X X X X Extracts X X X X X X X X Extracts X X X X ..... non existence of Mahesh Roadways is concerned, except the bald statement that was made by Bhupinder in the complaint that Mahesh Roadways does not exist at all, the AO did not make any enquiries on that aspect by taking steps under law. So also the AO relied upon the statement of Bhupinder on the aspect of any excessive expenditure. In all fairness the AO should have enquired the truth or otherwise of the statement of Bhupinder Kumar Sekhri instead of believing it to be a gospel truth. We, therefore, find that there is want of enquiry on the part of the AO in respect of the purchase of blown bitumen and also about the transport charges. Since we believe that the verification of the fact on this aspect has a bearing on the assessment of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed bogus claim of expenditure in respect of purchase of blown bitumen and also transport expenses (Freight Inward Crumb Rubber) and following the same for the AYs 2006- 07 to 2008-09 made similar additions. 3. Challenging these additions assessee preferred appeals before the Ld. CIT (A) and Ld. CIT (A) dismissed the appeals by way of impugned orders. Therefore, in all these appeals the assessee is challenging the addition relating to the transport expenses. 4. At the outset, in respect of the appeal relating to the AY 2006-07, it is the argument of the Ld. AR that this assessment is time barred in as much as under the proviso to Section 153C, the date of search is to be taken as the date of receiving the books of account or document ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 8 and so also there is no Mahesh Roadways at all. Basing on this and also on the statement of Bhupinder Kumar Sekhri AO found that 60% of the expenses are excessively booked. So also the Ld. CIT (A) in his order on paragraph no. 7.4 found that the booking of purchase of blown bitumen is bogus, since it is not a suitable raw material for the product manufactured by the Chennai and Silvassa Divisions of the assessee company. In that process Ld. CIT (A) confirmed the additions made by the AO besides and enhancing the addition of ₹ 30 lacs made by the AO in respect of the purchase of blown bitumen from ₹ 30 lacs to 32,31,360/-. 6. It is the argument of the Ld. AR that in this matter though a criminal complaint was found at the ti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... TR 10, CIT vs. FCS International Marketing Ltd. (Punjab Haryana High Court) 203 CTR 601, ACIT vs. Anima Investment Ltd. (3rd Member Delhi ITAT) 73 ITD 125, for the principles that no disallowance could be made or sustained on the basis of FIR or statements without enquiry by the AO as to the correctness or otherwise of the contents of such FIR or statement and in case of any disallowance basing on such statements can be sustained. 7. On a careful consideration of the matter, firstly in respect of the observations of the Ld. CIT (A) in paragraph no. 7.4 that blown bitumen is not a suitable raw material for production of Crumb Rubber modifier, whereas its raw material is natural asphalt is concerned, record does not support this observat ..... X X X X Extracts X X X X X X X X Extracts X X X X
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