TMI Blog2023 (3) TMI 923X X X X Extracts X X X X X X X X Extracts X X X X ..... - ITA No. 3661/Del/2019 - - - Dated:- 21-3-2023 - SHRI SHAMIM YAHYA , ACCOUNTANT MEMBER AND MS. ASTHA CHANDRA , JUDICIAL MEMBER For the Assessee : Shri Deepak Bansal , CA For the Department : Ms. Indu Bala Saini , Sr. DR ORDER PER ASTHA CHANDRA , JM The appeal filed by the Revenue is directed against the order of Ld. Commissioner of Income Tax (Appeals) 34, New Delhi ( CIT(A) ) dated 13.02.2019 relating to the Assessment Year ( AY ) 2014-15. 2. The Revenue has taken the following ground of appeal:- 1. Ld. Commissioner of Income-tax (Appeals) erred in law and on the facts of the case in deleting the addition of Rs. 9,54,37,240/- made by the AO on account of bogus purchases/expenses. 3. Briefly stated, the assessee is a trading company engaged in the business of export of food grains and its allied products. For the AY 2014- 15, the assessee e-filed its return of income on 18.09.2014 declaring total income of Rs. 66,08,670/-. The assessee s case was selected for scrutiny through CASS and statutory notices were issued and served upon the assessee. In response to these notices Authorised Representative of the assessee attended the assessment pro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... his order which are extracted below: 5.3 During the course of appellate proceedings, appellant has submitted that appellant company is trader exporter and during the year under appeal the company had made sales of Rs. 127.19 Crores against which it has made purchases of Rs. 121.22 Crores and has incurred freight and forwarding expenses of Rs. 6.15 Crores. The appellant has shown gross profit 7.64% against the GP of 6.5% in preceding year. It is submitted by the appellant that 3 parties did not sent their reply in pursuance of the notice u/s 133(6) issued by the AO. The appellant had on its own submitted copy of ledger accounts alongwith relevant reference to the bank statement from which payments have made to these parties. The appellant has filed the copies of account of Ruchi Soya Industries Ltd. and Mahesh Edible Oil Industries Ltd. in support of its contention alongwith copy of audited balance sheet It is submitted by the appellant that M/s Amrit Transport Co. is related to freight provider in relation to exports made by the appellant company. In support of its contention, appellant has filed invoice wise details of freight, supply of material and its export, copy of ledg ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ied with the bank statement from where payments have been made. The appellant is an exporter and AO has not doubted about sales made by The appellant and profit shown thereon. Without purchases appellant could not affect the sales and during the year appellant has shown better GP compared to previous year. The AO has made addition on account of bogus purchases and expenses but not rejected books of accounts u/s 145(3). The appellant has made advance payment against the goods purchased and bank statements reflecting advance payments to such seller of goods. Accounts of the appellant company are duly audited, reflecting quantitative details of stock items in tax audit report u/s 44AB. Export sale are reflected in audited balance sheets. Appellant is maintaining stock register and no payments were made in cash. No addition was made by the AO in preceding AY whereas appellant has made similar transaction with the aforesaid parties. 5.5 In the case of Anis Ahmed Sons 297 ITR 441 (SC) the Hon'ble Apex Court held that for the assessment year 1983-84 the assessing authority had accepted the claim of the assessee that it had conducted its business as commission agent. The trade ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Hi Lux Automotive (P.) Ltd. (2009) 23 DTR 385 / 183 Taxman 260 (Del) (HC) Hon'ble Delhi High Court held that the reason for disallowing expenditure in respect of other four parties was that when the notices were sent they were not available. We are of the opinion that even in their absence the assessee had produced sufficient material to show payments, namely the bank accounts of such parties. We are constrained to note that if the summons are not issued to those parties or the same could not be served at the given addresses, the Assessing Authority could have obtained their addresses from the banks as the bank statements were produced and could have made an endeavour to serve those parties at the said addresses. Once quantitative tally of sales is furnished, the same should be accepted. It is not open for Assessing officer to disregard the same, Assessee having made payment of raw material purchase from two parties by means of A/c payee cheques and produce bank statement showing the payments. No addition could be made. 5.9 Considering the above facts that since appellant has furnished confirmed copy of account in respect of purchase parties and payments were made to th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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