TMI Blog2018 (4) TMI 1910X X X X Extracts X X X X X X X X Extracts X X X X ..... : None. JUDGMENT By way of this appeal, the appellant has challenged the judgment and order of the Tribunal whereby the Tribunal has dismissed the appeal of department as well as cross objection filed by the assessee. Counsel for the appellant framed the following substantial questions of law:- i) Whether the findings of the Tribunal are perverse in upholding the findings of the CIT(A) of deleting the addition of ₹ 60,70,056/- on account of suppressed scrap sales which was made on the basis of material found during the course of survey u/s 133A and no evidence was given by the assessee to prove the market rate of that period? ii) Whether the findings of the Tribunal are perverse in upholding the findings of the CIT(A) of deleting the addition of ₹ 79,82,382/- made on account inflated purchases specifically when such purchases were not entered in the material inward register and goods receipt register? iii) Whether the findings of the Tribunal are perverse in upholding the findings of the CIT(A) of deleting the addition of ₹ 1,23,879/- on account of bogus payment of commission? While deciding the issue groundwise, the Tribunal has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urchases have been made from these parties or not. Further copy of ledger accounts of these parties will clearly reveal that payments have been made to these parties against purchases. In this respect, it is further submitted that during the course of proceedings for AY 2001-02 to 2004-05 representatives of these parties appeared before the AO and have confirmed the transactions. As regards the documentary lapses noted by AO that certain weighment slips, builties etc are missing these are matters of internal control and do not prove that the purchases made are bad. The documents do not form part of the books of accounts and thus non availability of the same, that too in few cases/few instances cannot conclude the purchases to be bogus. 6.9. the appellant has submitted the details of Banks through which the payments have been made/encashed to/by these parties. The appellant has further requested the AO to issue the summons to these parties, if any further investigation from these parties is required. It is submitted that it did not have dealings with these parties since last 4-5 years and without purchases consumption of material, it was not feasible for the company to produ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d have been made through the banking channel against the receipt of bills, the yield in the production process, no. of cylinders manufactured, etc. have not been disputed by the AO. Further, I find that purchases made by the appellant from two parties namely M/s. Agarwal Brothers and M/s. R.K. Steel Trading Corp. in the preceding year and succeeding year from these parties have been held to be genuine by the Hon ble ITAT for AY 2001-02 vide order dated 09.09.2011 in ITA No. 9/JP/2011 for AY 1999-2000 vide order dated 26.10.2007 in ITA No. 560/JP/2007 ITA No. 513/JP/2007. However, as regards the purchases made from M/s. Saurabh Steel Syndicate are concerned, the same facts are prevailing in this case also as the payments were duly made through the bank account after receipt of bills and a copy of the ledger account showing all these details has been filed on record. Therefore, the contention of the appellant with regard to purchases of ₹ 30,85,511/- made from this party during the period under consideration, is found to be in order, in the absence of any material to the contrary available on record. 6.13. Thus, in view of the above discussion and in the absence of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re disallowance of ₹ 123879 on account of commission on scrap sale has been made. 7.7. The appellant has stated that certain papers pertaining to AY 2004-05 2005-06 on account of sale of scrap were found and the income stated therein was surrendered and offered for taxation. However, no such papers or other evidence pertaining to receipt of scrap value outside the books of accounts were found and also no evidence has been placed on record by the AO before making the addition. The addition made on this account is not justified as complete production records relating to receipt of raw material, number of cylinders manufactured, generation of scrap, etc. Are under the supervision of Excise authorities. 7.8. It is further stated that AO was not justified in making an addition on this account after extrapolating the figures of scrap generation and AO has adopted the same rate of sale of scrap which has been used in AY 2004-05. Therefore, the addition made on this account may by deleted in the absence of any evidence. The appellant has placed reliance on a number of decisions of various courts to substantiate its arguments. 7.9. I have gone through the material ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ertaining to assessment year 2000-01. The revenue has raised the following grounds : 1. That the ld. CIT (A) has erred on the facts circumstances of the case in deleting the addition made by the AO on account of inflation of purchases for ₹ 1,67,07,740/-. 2. That the ld. CIT (A) has erred on the facts circumstances of the case in deleting the disallowance made by the AO on account of suppression of scrap sales for ₹ 1,12,58,527/-. 7. We have heard rival contentions, perused the material on record and gone through the orders of the authorities below. Both the parties have advanced the similar arguments as made for the assessment year 1998-99. We have adjudicated the identical grounds in the appeal of the revenue in ITA No. 716/JP/2016 herein above. Since there is no change in the facts and circumstances for the assessment year under consideration, we affirm the order of ld. CIT (Appeals) who had rightly deleted the additions by following the decisions of the Tribunal in the assessee s own case for the A.Y. 1999-2000. The grounds of the revenue are rejected. We are in complete agreement with the view taken by the Tribunal, no substantial question of law arises. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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