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TMI Blog2022 (9) TMI 177X X X X Extracts X X X X X X X X Extracts X X X X ..... appeal raised by the Revenue read as under:- "1. The order of ld.CIT(A) is not correct in law and facts. 2. On the facts and circumstances of the case the ld. CIT(A) has erred in deleting the addition of disallowance of Rs.2,00,07,633/- made by the Assessing Officer on account of 'Bogus Purchase' which were capitalized. 3. The appellant craves leave to add, amend any/all the grounds of appeal before or during the course of hearing of the appeal." 3. The ground of Cross Objection taken by the assessee reads as under:- "1. On the facts and circumstances of the case and in law, the initiation of assessment proceedings and issue/service of notices by the Assessing Officer is not in accordance with the provisions of law and accordin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vide order sheet entry dated 07.03.2013 was apprised as to the enquiries conducted in terms of issue of summon u/s. 131 and physical enquiry conducted by the Inspector which reveals that these parties are not genuine business entity but mainly entry providers indulging in issue of bills but not effecting true sales. Therefore, A.R. of the assessee was finally asked to produce the above parties along with books of accounts & ITR to prove the genuineness of the party and the transactions and failure to which the purchase transactions will be treated as bogus. The case was adjourned to 11.03.2013. However, none attended nor any party was produce to prove the genuineness of the transaction of purchase of material from the above mentioned partie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ined Expenditure". Accordingly, the purchases claimed by the assessee from M/s. Shiv Sales Corporation total amounting to Rs. 58,40,153/-, M/s. Om Enterprises amounting to Rs.46,40,000/-, M/s. Paras Enterprises amounting to Rs. 53,67,480/- & M/s. Balaji Enterprises amounting to Rs.41,60,000/- are not genuine and to be treated as "Bogus". Therefore, the purchase expenses to the extent of Rs.2,00,07,633/- is added to the income of the assessee on account of "Bogus Purchases"" 7. The ld.CIT(A) granted relief with the following observations:- "5.1 In the sixth ground of appeal, the appellant has objected to the treatment of purchases of Rs.2,00,07,633/- as bogus and its reduction from the closing work in progress. The submissions made by th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Anil Kumar Sharma recorded at the time of search. In this regard at the out set it is submitted that neither any incriminating document belonging to the appellant company has been found during search nor any statement was recorded relating to the company . Out of the above parties, all the parties except Shiv Sales Corporation are the same in respect of whom disallowance was made in the case of Ultra Home Construction Pvt.Ltd. for the A.Y. 2011-12 and the same has been deleted vide CIT(A) order dated 17.01.2014 in ITA No. 108/2013-14. The reason for making the disallowance in respect of Shiv Sales Corporation is also the same as in case of other parties. Therefore the issue in the present appeal stands covered in favour of the appellant. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essee has claimed expenditure on account of purchase from certain parties who are involved in merely issue of purchase bills and effecting payments through banking channels for commission and not actually supported with the physical transfer of goods. Furthermore, from para 5.2 of first appellate order, we observe that the ld.CIT(A) concluded the issue in favour of the assessee by observing and directing the AO to make available all adverse material and to allow opportunity to the assessee to explain/rebut the evidence and this may be undertaken during AY 2012-13 and subsequent years when the said expenditures embedded in the work-in-progress will be considered for computing the income of the assessee as per POC method and also directed the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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