M/S. ACCURA ENTERPRISE PRIVATE LIMITED,,AHMEDABAD vs. THE DY. CIT., CIRCLE-1,, AHMEDABAD

The solitary issue in the ground of appeal

Aggrieved assessee has filed appeal before the ld. CIT(A). The ld. CIT(A) has dismissed the appeal of the assessee holding that the assessee has failed to establish the genuineness of the transaction.

During the course of appellate proceedings, the ld. counsel has furnished paper book comprising detail of document and information furnished before the lower authorities. The ld. counsel has referred different pages of the paper book i.e. copy of bill of the party from whom the goods were purchased, copy of transport receipts of the transporter for delivery of goods to the assessee, copies of bank account showing payment made to the parties, copies of invoices, copies of sales tax, form no. ‘H’, copies of contract notes, copies of form no. 59, copies of form no. 403 of the commercial tax department as evidence of dispatch of goods from the purchasers to the assessee, copies of receipt of the payment made to transporter, copies of form no. C of Central Sales Tax, copies of confirmation of the sundry creditors etc. After referring briefly elaborated aforesaid documents, the ld. counsel has vehemently contended that lower authorities have made the disallowance without considering the relevant evidences, therefore, the claim of the assessee should be allowed on merit. On the other hand, the ld. departmental representative has supported the order of lower authorities.

We have heard both the sides and perused the material on record. During the course of assessment, the assessing officer has made disallowance to the amount of Rs. 19,98,102/- in respect of sundry creditors pertaining to the above referred two parties on the ground that required confirmation was not furnished by the assessee. Subsequently, the assessee has furnished the confirmation before the ld. CIT(A) as additional evidences under rule 46A of the Act. The ld. CIT(A) has admitted the additional evidences and called remand report from the assessing officer. In the remand report, the assessing officer has stated that in respect of sundry creditors namely Westwind Logistics Pvt. Ltd. the necessary books of account and other document were maintained and TDS was deducted and necessary bills were verified therefore, stated that the appeal be decided on merit. In respect of other sundry creditors namely M/s. Kankane Oil Mills, the assessing officer has stated that notice issued to it was returned un- served. However, on perusal of the material kept in the paper book, it is noticed that assessee has furnished the copy of sale invoice pertaining to Kankane Oil Mill and copy of contract note, copy of challan, copy of receipt of the agricultural production of marketing committee, copy of form no. 403 of the commercial sales tax department certifying that goods were distributed from Kankane Oil Mill to place of the assessee. Further, the asessee has also placed in the paper book copy of transporter receipt along with payment of transport charges for delivering the goods from the consigner to the assessee, copy of bank account statement showing that payment was made by the assesee to Kankane Oil Mill. In addition to above, we have noticed that the party namely Kankane Oil Mill was based in Uttar Pradesh and for any further verification the assessing officer should Page No 5 M/s. Accura Enterprises Pvt. Ltd. vs. DCIT have issued commission u/s.131(i)(d) of the act after keeping into consideration the distance from the place of the assessee and the place of the assessee. The assessing officer has neither given any commission nor disproved a number of evidences furnished by the assessee in supported of its claim of purchasing the goods from the aforesaid parties. The ld. CIT(A) has not disproved the relevant supporting evidences furnished in respect of other party namely Westwind Shipping Logistics Pvt. Ltd. in spite of the fact that assessing officer has clearly mentioned in his remand report that bills were verified and TDS was deducted. Therefore, considering the aforesaid facts and circumstances, we are not inclined with the decision of the ld. CIT(A) for sustaining the additions on assumption basis without disproving the relevant material submitted by the assessee. Therefore, the appeal of the assessee is allowed.

In the result, the appeal of the assessee is allowed. Order pronounced in the open court on 27-05-2020 Sd/- Sd/- (MADHUMITA ROY) (AMARJIT SINGH) JUDICIAL MEMBER ACCOUNTANT MEMBER Ahmedabad : Dated 27/05/2020 आदेश क� ��त�ल�प अ�े�षत / Copy of Order Forwarded to:- 1. Assessee 2. Revenue 3. Concerned CIT 4. CIT (A) 5. DR, ITAT, Ahmedabad 6. Guard file.