TMI Blog2017 (11) TMI 387X X X X Extracts X X X X X X X X Extracts X X X X ..... in the matter. - Decided against revenue. Bogus purchases - Held that:- Assessee has specifically explained the discrepancy in noting the purchases material into Kg or MT. Proper bills have been produced on record to justify the contention of the assessee. The A.O. and Ld. CIT(A) have however, not given any finding on the same. It would, therefore, show that the matter requires reconsideration at the level of the A.O. Accordingly, set aside the orders of the authorities below and restore this issue to the file of the A.O. with a direction to re-decide this issue by verifying the facts from the invoices by appreciating the explanation of assessee. In case, A.O. has any doubt, he could have verify the facts from the concerned parties as pe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fore Ld. CIT(A). However, the appeal of assessee has been dismissed. 3. I have heard the Learned Representatives of both the parties and perused the material on record. All the issues are decided as under. ISSUE NO.1 - UNSECURED LOANS : 4. During the course of assessment proceedings, it has been noticed that assessee has received unsecured loans from the following persons. 1. Ms. Gulista Begum Rs.1,50,000 2. Mohd. Shahbaz ₹ 1,45,000 3. Ms. Sabnam Begum ₹ 50,000 4. Mrs. Praveen Begum ₹ 1,00,000 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... record noted that the examination of the bank accounts of the creditors shows that there have been cash deposits in all the accounts just before extending loan through cheques. None of the parties have been produced before the A.O. for examination. Therefore, assessee failed to prove genuine credit in the matter. The appeal was accordingly dismissed. 5. After considering the rival contentions, I do not find any merit in this ground of appeal of assessee. The Learned Counsel for the Assessee reiterated the submissions made before the authorities below and submitted that all the documents were produced to the satisfaction of the A.O, therefore, no additions should be made. He has relied upon the order of ITAT, Lucknow Bench (Third Member) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eal of assessee. The Hon ble Gujrat High Court in the case of Blessing Construction vs. ITO 32 taxmann.com 366 held that where sizeable amounts were deposited in cash in account of depositors only before their withdrawal through cheques in favour of the assessee, addition was justified . In the present case, the return of income of the creditors would show that they have declared small income and paid meagre tax. In their bank accounts, there was meagre bank balance prior to giving loan to the assessee and cash have been deposited immediately before giving loan to the assessee. Further, assessee failed to produce any of the creditor before A.O. for examination to verify genuineness of transaction. Therefore, assessee failed to prove identi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 8.690 MT but they have written 8690 MT which is a mistake due to illiteracy of the party. The assessee purchased material of 8.690 MT or can say 8690 Kg. The A.O. however, did not accept the explanation of assessee and made the addition on account of bogus purchases of ₹ 13,97,750. The assessee submitted before Ld. CIT(A) that mistake is a clerical which should be clarified from the vouchers and invoices. An example is also given as to how the item is to be considered in Kg and MT. Assessee therefore, explained that there is no mistake in total of the purchases. The Ld. CIT(A) however, did not accept the explanation of assessee and dismissed this ground of appeal of assessee. 9. After considering the rival contentions, I am of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... closing stock of ₹ 88,87,866. But as per the trading account, closing stock was shown at ₹ 86,85,400. Difference of ₹ 2,02,466 was added to the income of assessee. The Ld. CIT(A) did not accept the explanation of assessee and also confirmed the addition and dismissed this ground of appeal. 13. After considering the rival contentions, I am of the view that addition is wholly unjustified. Learned Counsel for the Assessee pointed out page-30 of the paper book which is Trading and P L A/c to show that sales have been declared in a sum of ₹ 88,87,866 and closing stock is shown at ₹ 86,85,400. PB-43 is Trading and P L A/c for the period ending on 31st March, 2013 to show opening stock of ₹ 86,85,400. PB- ..... X X X X Extracts X X X X X X X X Extracts X X X X
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