TMI Blog2022 (9) TMI 177X X X X Extracts X X X X X X X X Extracts X X X X ..... ecting payments through banking channels for commission and not actually supported with the physical transfer of goods. From first appellate order, we observe that the 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 AO to take action as per law. CIT(A) passed impugned order on 11.07.2014, much water have flown till today including conclusion of assessment proceedings ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 accordingly the assessment order passed is liable to be quashed. The appellant craves leave to add, alter, modify or delete one or more ground before or at the time of hearing of appeal. 4. None appeared on behalf of the assessee despite of service of notice. Since we find that this matter could be disposed in the absence of representation from the assessee s side, we proceeded to adjudicate the matter after hearing the ld. Sr. DR. 5. The ld. Sr. DR submitted that the AO has made additions with right observations and findings. He dr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ctions 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 parties. This shows that the assessee has nothing to produce and offered to substantiate the genuineness of the transaction of purchase of goods. 5.7 In view of the above facts, the identity existence of the above mentioned parties and genuineness of transactions of purchases of raw material by the assessee remained un-verifiable, as: a) The existence of the parties on the given business as well as residential addresses were not verifiable. b) The location of the premises from which business is purport to be car ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... elief 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 the appellant in this regard are as under: 3. Ground No. 6 (disallowance on A/c of alleged bogus purchases Rs.20007633/-) The disallowance of Rs.20007633/- made by the A.O. as alleged bogus purchases is totally erroneous. The A.O. has made the addition of purchases in respect of following parties:- S. No. Name of the Party Amount (in Rs.) 1 Shiv Sales Corporation 5840153 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ppellant 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. The disallowance made is also beyond the provisions of section 153C read with section 143(3) of the Income Tax Act, 1961. 5.2 I have considered the as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rough 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 AO to take action as per law. The CIT(A) passed impugned order on 11.07.2014, much water have flown till today including conclusion of assessment pro ..... X X X X Extracts X X X X X X X X Extracts X X X X
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