DEPUTY COMMISSIONER OF INCOME-TAX vs. MOHANISH ENGINEERING PVT. LTD., JALGAON

आदेश / ORDER आदेश आदेश आदेश

PER R.S.SYAL, VP :

This appeal by the Revenue is directed against the order dated 28-03-2016 passed by the CIT(A)-12, Pune in relation to the assessment year 2011-12.

deleted the addition, against which the Revenue has approached the

Tribunal.

record, it is observed that the assessee filed confirmation from the trade

creditor before the Ld. CIT(A) as an additional evidence which could not

be produced before the AO since only a period of 10 days was granted

for doing the needful. The Ld. CIT(A) sent back the copy of confirmation

to the AO and asked for his comments. The AO in his remand report

impressed upon the fact that the assessee failed to prove the

genuineness of the sundry creditor by not submitting the copy of

confirmation during the course of original assessment proceedings. In

Para No.4.4 of the remand report, the A.O. acknowledged the fact that

the assessee did furnish a copy of confirmation, but refused to accept

the genuineness of the creditor on the ground that mere furnishing of

confirmation did not prove the genuineness. We find that the grievance

of the AO in making the addition on account of unproved sundry

creditor was that the assessee failed to furnish the confirmation, which

got satisfied during the course of remand proceedings. In such remand

proceedings, the AO could not find anything negative qua the purchases

made by the assessee from M/s. Mahavir Civil Engineering & Services

Pvt. Ltd. Not only this, the Ld. CIT(A) has recorded in Para No.3.5 of the

impugned order that the AO asked for the confirmation and copies of

bills raised by the creditor, which were duly submitted to him. It is

further undisputed that the said creditor was also assessed with the

same AO. The AO has not brought anything on record to demonstrate

that either the creditor was not genuine or the purchase transactions

were bogus. In view of the foregoing discussion, it is apparent that the assessee successfully proved the genuineness of the creditor. We

therefore hold that the Ld. CIT(A) was justified in deleting the addition.

Rs.6,42,939/- made by the AO on account of estimated net profit rate

taken at 6% as against 4.17% declared by the assessee.

profit at the rate of 4.17%. The AO rejected such profit percentage and

adopted 6% net profit rate for working out the addition of Rs.6,42,939/-

The Ld. CIT(A), after considering the remand report of the AO, preferred

to delete the addition, against which the Revenue has come up in

appeal before the Tribunal.

relevant material on record, it is observed that the assessee regularly

maintained books of accounts which were duly audited. Recording by

the AO that the assessee did not produce the books of accounts was

controverted by the assessee before the Ld. CIT(A) in terms of non

requisition of such books by the AO. Such finding has not been shown

to be unfounded by the Ld. DR. During the remand proceedings, the

books of accounts were produced before the AO for verification. Except

for the fact that the net profit rate in this year scaled down, the AO has

not given any reason to justify the rejection of book results. In view of

the fact that the books of accounts were produced admittedly during

the course of remand proceedings and the AO could not find any defects

in such books, we are of the considered opinion that no fault can be

found with the Ld. CIT(A) in deleting the addition, which was made by

the AO by applying an ad hoc net profit rate of 6% as against 4.17% declared by the assessee. We therefore, approve the view taken by the

ld. CIT(A).

Order pronounced in the Open Court on 23rd October, 2018.

Sd/- Sd/- (VIKAS AWASTHY) (R.S.SYAL) �याियक सद�य �याियक �याियक �याियक सद�य सद�य /JUDICIAL MEMBER उपा�य� सद�य उपा�य� उपा�य�/ VICE PRESIDENT उपा�य�

पुणे Pune; �दनांक Dated : 23rd October, 2018 सतीश

आदेश क� आदेश क� �ितिलिप �ितिलिप अ�ेिषत अ�ेिषत/Copy of the Order is forwarded to : आदेश आदेश क� क� �ितिलिप �ितिलिप अ�ेिषत अ�ेिषत

अपीलाथ� / The Appellant; 1. ��यथ� / The Respondent; 2. आयकर आयु�(अपील) / The CIT (Appeals)-12, Pune. 3. आयकर आयु� / The Pr. CIT Central, Nagpur 4. िवभागीय �ितिनिध, आयकर अपीलीय अिधकरण, पुणे “बी 5. बी बी” / DR ‘B’, बी ITAT, Pune; गाड� फाईल / Guard file. 6.

आदेशानुसार आदेशानुसार आदेशानुसार/ BY ORDER,स आदेशानुसार

// True Copy //

Senior Private Secretary आयकर अपीलीय अिधकरण ,पुणे / ITAT, Pune. *