DCIT, CIRCLE-20(2), NEW DELHI vs. R S TRIVENI FOODS P.LTD, DELHI

Per Dr. B. R. R. Kumar, Accountant Member:

2. The case of the assessee with regard to reopening of assessment is a fall out of the finding of the search conducted in the case of M/s Shakti Bhog Food Ltd. During the search, Sh. Kewal Krishan Kumar admitted that he has indulged in giving bogus bills of purchases to M/s Shakti Bhog Food Ltd. It was admitted that Sh. K.K. Kumar has given entries at the behest of Sh. Devki Nandan Aggarwal (Prop. M/s Lachhu Ram Aggarwal & Co.) and Sh. Balbir Kumar (Prop. Divya Enterprises).

order, the observations of the Assessing Officer are reproduced as under for ready reference:

“3.2 In response to above, assessee filed its reply by hand which is part of record. Assessee in his reply tried to justify the modus operandi of the business, where a “Kacha Ahartiyas” make cash purchase from the farmers and later sell it to the mill owners and M/s Lachhu Ram Aggarwal is nothing but a “Kacha Ahartiyas”, but assessee failed to justify the genuineness of the transactions done with M/s Lachhu Ram Aggarwal. Sh. Devki Nandan Agarwal was issued a summon on 30.11.2018 and he did present himself before the undersigned till date. In the light of the above, it is clear that the undersigned has no reasons to deviate from the factual findings which are already part of the record, as reproduced in foregoing paras, and confronted to the assessee during the course of assessment proceedings.

3.3 Thus, the accommodation entry received by the assessee company during the year A.Y. 2011-12 of Rs. 5,05,41,311/- in the guise of bogus purchases is being added to the total income of the assessee. Further, as discussed above in the assessment order, I am satisfied that the assessee has concealed his particulars of income and accordingly Penalty proceedings u/s 271 (1)(c) of the Act are being initiated for concealment of true particulars of income.”

4. Aggrieved, the assessee filed appeal before the ld. CIT(A) wherein the addition made by the Assessing Officer is deleted.

5. The revenue filed appeal before us.

3 R. S. Triveni Foods Pvt. Ltd.

6. Heard the arguments of both the parties and perused the material available on record.

1. Sh. Kewal Krishan Kumar, Sh. Balbir Kumar and Sh. Devki Nandan Aggarwal involved in giving the entries of bogus purchase to M/s Shakit Bhog Group and they have also had transactions with the assessee and the same is treated as bogus.

2. Sh. Devki Nandan Aggarwal has not responded to the notice issued u/s 131, hence, adverse inference has been drawn. 3. Relied on the inquiries and investigations conducted by the DDIT(Inv.)

cheques from the buyers, cash payment was made to agriculturist after withdrawing cash from bank.

7. Relied on the decision of the ld. CIT(A)-13, New Delhi in the case of Ghanshyam Das for the A.Y. 2010-11, A.Y. 2011-12 and A.Y. 2012-13 (Appeal No. 310 to 313 dated 26.12.2017) wherein the purchases from Sh. Devki Nandan Aggarwal (Prop. M/s Lachhu Ram Aggarwal & Co.) were undoubted.

judgment of Co-ordinate bench of ITAT in the case of DCIT Vs. Amar Chand Gupta in to 3406/Del/2009. No specific evidences have been brought on record with regard to the transaction done by the assessee in relation to D.N. Aggarwal to prove that the transactions are bogus. Hence, keeping in view, the entire factum, we decline to interfere with the order of the ld. CIT(A) in treating the purchases made from Sh. Devki Nandan Aggarwal (Prop. M/s Lachhu Ram Aggarwal & Co.) as no different from the purchases made from other regular parties.