TMI Blog2022 (1) TMI 1255X X X X Extracts X X X X X X X X Extracts X X X X ..... s disallowances as per provisions of section 41(1). Hence, no merit in additions - we set aside the orders of the authorities below and direct that addition in this regard should be deleted. - Decided in favour of assessee. - I.T.A. Nos. 796 & 804/Mum/2020 - - - Dated:- 6-1-2022 - Shri Shamim Yahya, Accountant Member For the Assessee : Veena. For the Department : Anil Gupta. ORDER Per Shri Shamim Yahya (AM) :- These appeals by the assessee are directed against the order of learned Commissioner of Income Tax (Appeals)-36 dated 29.11.2019 pertain to the respective assessment years as above 2. Since grounds are common facts and adjudication of revenue authorities are similar, we refer to AY 2012-13. 3. Groun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has erred in law and in facts of the case failed to appreciate that the purchases for the year under appeal were Rs.31.71 crores turnover of Rs.31.88 crores are with different entities not within a specific group. 5.0 Ground No.5: Debtors Creditors- Purchases Sales of the year under appeal On the facts and in the circumstances of the case, the Hon'ble CIT(A) has erred in law and in facts of the case failed to appreciate that the creditors of Rs.0.44crores and nill debtors materialized from the purchases and sales made during the year under appeal and creditors paid within six months on receipt from the debtors/sale realization. 6.0 Ground No.6: Creditors Debtors cannot be bogus when Purchases Sales have been accepted as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has submitted that The assessee is engaged in the trading business and associated with diamond industry where business is done on good faith and bona fide belief. The purchase payments made and the sales receivables are through banking channels. The assessee does not have capital to invest in its trading business. The assessee endeavours to mitigate its risk and it buys the goods on requirement of its customers and such there is nil inventory in books of accounts at the year end. The assessee interacts directly with the purchaser and sellers and the goods are purchased and 3old based on customers requirement. The assessee always purchase goods on credit whenever there is customers to buy and the payment is made immediately af ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ncome of the assessee. Penalty proceedings u/s.271(1)(c) of the I.T.Act, 1961 are initiated separately for furnishing inaccurate particulars of income. 12. After going through the details filed and discussion with the authorized representative, the total income of the assessee is computed as under :- Total income as pet order u/s. 143(3) of the I.T. Act, 1961 dated 26.03.2015 Rs.2,02,940/- Add; As discussed above Rs.24.252/- Total income: Rs.2.27,192/- Rounded off to : Ru.2, 27,200 /- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rts to prove the genuineness of high value transactions in the bank account. Neither the assessee has controverted the findings recorded by Investigation Wing of the Department. After considering the submissions and perusing the material available on record the AO held that the transaction pattern in the account of M/s. Supriyam Diamond shows a rotational pattern of high value transfer within a specific group of entities were apparently not having any economic rationale behind them and were treated as bogus. The assessee did not bring any material on record to prove that the creditors are genuine except stating that the payments to creditors are made through account payee cheques in subsequent year. The case of the assessee is defies the ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
