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Income Tax Appellate Tribunal, AHMEDABAD “C” BENCH
Before: SHRI WASEEM AHMED & SHRI MAHAVIR PRASAD
PER MAHAVIR PRASAD, JUDICIAL MEMBER 1. This appeal by the Assessee is directed against the order of the Ld. CIT(A)-2, Ahmedabad dated 02.11.2015 pertaining to A.Y. 2012-13 and following grounds have been taken.
ITA No. 3639/Ahd/2015 2 . A.Y. 2012-13 1. The order passed u/s.250 on 02/11/2015 for A.Y.2012-13 by CIT(A) upholding the addition of Rs.11.50 lakh as bogus purchases made by AO is wholly illegal, unlawful and against the principles of natural justice.
During the course of scrutiny, the assessee submitted ledger accounts in respect of purchases made during the year and details of sundry creditors. In this regard, on-line verification from the official web-site of Gujarat and other States Commercial Tax Department was carried out by the ld. A.O. so as to ascertain the existence of the parties from whom the purchases were made by the appellant during the year. On verification of on-line details from the official website of Gujarat Commercial Tax Department, it is found that registration No. 24560303920 pertaining to M/s. Jadeja Enterprises got cancelled with effect from 30.03.2011. Therefore, this party cannot be held as existent/genuine party and hence any transaction carried out by the appellant with M/s. Jadeja Enterprise cannot be held as genuine as assessee had made purchase of Rs. 1150000/- from M/s. . Jadeja Enterprises ad same is mentioned at page no. 93 (copy of ledger in the books of account of the assessee) as registration of M/s. Jadeja Enterprises was cancelled. Therefore, Assessing Officer has held purchase of Rs. 1150000/- as bogus and added to the total income of the appellant.
Against the said order, appellant preferred first statutory appeal before the ld. CIT(A) but to no avail.
We have heard both the parties and gone through the relevant records. In this found, ld. A.O. carried out on-line verification from the web-site of VAT/Sales tax department for the purchases claimed by the appellant. He noticed that the
ITA No. 3639/Ahd/2015 3 . A.Y. 2012-13 registration with VAT department of one of the parties from whom the appellant made purchases was cancelled. The A.O. communicated the same to the AR and asked to prove the genuineness of the purchase transaction with M/s. Jadeja Enterprises. In support of its contention, assessee filed name and address, VAT number (TIN) ledger account and also furnished the quantitative details of production by way of producing Excise registers which reconciles the purchase, production and sales and above said purchase was made through banking channels and lower authority has not found any irregularity either in the books of accounts or pointed out any defect in the same.
In support of its contention, ld. A.R. cited an order of Mumbai Bench in the case of ITO Vs. Paresh Arvind Gandhi in ITA No. 5706/Mum/2013 in which it was held that even in the case that the alleged parties by the VAT department as entry provider and in absence of any corroborative evidence against the appellant when payments are made through banking channel, the addition as bogus purchases cannot be made. In view of the foregoing discussion, we allow the appeal of the appellant.
In the result, the appeal filed by the appellant is allowed.
Order pronounced in Open Court on 11 - 05- 2018
Sd/- Sd/- (WASEEM AHMED) (MAHAVIR PRASAD) ACCOUNTANT MEMBER True Copy JUDICIAL MEMBER Ahmedabad: Dated 11/05/2018 Rajesh Copy of the Order forwarded to:- 1. The Appellant. 2. The Respondent.