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TMI Blog2017 (4) TMI 1404X X X X Extracts X X X X X X X X Extracts X X X X ..... ective ground of appeal (GOA 1-5) is about deleting the addition of unexplained expenditure to the tune of Rs. 1.24 crore. During the assessment proceedings,the AO directed the assessee to furnish a list of persons from whom purchases were made.Out of the list 5 parties, namely Dharam Traders Private Ltd.,Kotsons Impex Pvt. Ltd.,MR Corporation,Prince Trading Co.,Shraddha Trading Co.,from whom the assessee had made purchases were appearing in the list of suspicious dealers who were issuing bogus bills without any goods and materials as per the official website of Sales Tax Department. He issued notices u/s.133 (6) to the aforesaid parties. However, in all the cases of notices were returned back unserved by the postal authorities. He directed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Nikunj Eximp Enterprises Pvt.Ltd. (35taxmann.com384) of the Hon'ble Bombay High Court and the case of Rajeev M. Kalathil (6727/Mum/2012 ). After considering the submission of the assessee and the assessment order, the FAA held that in the earlier year identical issue was decided by his predecessor in favour of the assessee. Following that order,he allowed the appeal of the assessee. 2.2.During the course of hearing before us the Departmental Representative (DR) supported the order of the AO.The Authorised Representative(AR) referred to the order of the Ganpatraj A.Sanghvi (2826/Mum/2013-AY. 2009-10, dt.15.11.2014;); Deepak Poppatlal Gala(ITA/ 5920/Mum/2013 & Ors (dt.27.3.2015);Hiralal Chunnilal Jain & Ors (4547/Mum/2014 dt.1.1. 201 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Assessing Officer has invoked Sec. 69C of the Act to treat the expenditure on purchases of Rs. 37,45,965/- as unexplained. So however, the assessee has demonstrated that the payments for such purchases have been made through account payee cheques for which there is no repudiation by the Assessing Officer thereby implying that the source of expenditure stands explained. In fact, the case of Assessing Officer is that the purchase transactions are "only accommodation entries and not really purchases", thereby implying that as per the Assessing Officer assessee has not incurred such expenditure. To hold the transactions as mere accommodation entries and not real purchases is quite different from saying that the sources of expenditure for the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se Bharati Teletech Ltd. (ITA/2174/Del/2008). After considering the available material the FAA held that the assessee had made the payment during the year , that there was no reason to disallow the same referring to the provisions of section 43B of the Act. He allowed the appeal filed by the assessee. 3.2.Before us,the DR supported the order of the AO.The AR stated that deduction was not claimed twice,that the claim made by the assessee was allowable on payment basis. He referred to pg-71 to 79 of the PB. 3.3.After considering the rival submissions,we find that the AO had made the disallowance without any valid reason, that the assessee had made the VAT payment for the year under consideration(Pg-71 to 79 of PB ) are the challans evidenci ..... X X X X Extracts X X X X X X X X Extracts X X X X
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