BISCO STEEL UDYOG PVT. LTD.,JHARKHAND vs ITO, WARD - 3(3), KOLKATA , KOLKATA

Income Tax Appellate Tribunal, BENCH ‘SMC’ KOLKATA

Before: Hon’ble Shri J.Sudhakar Reddy, AM]

ORDER PER J.SUDHAKAR REDDY, AM:

This is an appeal by the assessee directed against the order of the Commissioner of Income Tax-(A)-1, Kolkata relating to A.Y. 2008-09

The AO has made this addition on the ground that there was suppression of purchases. He was of the view that two bills of Rs.6,17,481/- and Rs.9,20,869/- were not reflected in the accounts of the assessee company. The assessee contended before the ld. CIT(A) that these two purchases were made by the sister concern of the assessee M/s. Bisco Sponge Iron Pvt. Ltd as per copy of the bills and bank statements. It was also stated that the amounts in question were paid by M/s. Bisco Sponge Iron Pvt. Ltd. The ld. CIT(A) found that the assesse could not prove that the payments were made by M/s. Bisco Sponge Iron Pvt. Ltd. For this it was held that specific entries in the bank statement of M/s. Bisco Sponge Iron Pvt. Ltd was not pointed out by the assessee. Before me the assessee produced copies of the bank statements, copies of bills issued by Shri K.S.Ahluwalia, who disclosed copies of the ledger account of Shri K.S.Ahluwalia in the books of the assessee etc in support of the contentions. Copy of the bank statements of M/s Bisco Steel Udyog Pvt. Ltd of the assessee company have been filed. The assessee claimed that payments were made by Bisco Steel Udyog Pvt. Ltd. A.Y.2008-09 2 it on behalf of M/s. Bisco Sponge Iron P. Ltd and the purchases have been accounted by the purchaser . This is a set aside matter. The assessee has been struggling to explain its transactions with evidence. M/s. Bisco Steel Udyog Pvt.Ltd and M/s. Bisco Sponge Iron P.Ltd are companies registered under the Companies Act maintaining books of account. The books of account of M/s. Bisco Steel Udyog P. Ltd could have been checked and found out whether the claim of the assessee and the documents produced by him are correct or not. This is not done. All the evidences filed by the assessee are rejected without enquiry. Under this circumstances, I delete the addition and allow this ground of appeal of the assessee.

In the result the appeal of the assessee is allowed. Order pronounced in the Court on 13.04.2018.

BISCO STEEL UDYOG PVT. LTD.,JHARKHAND vs. ITO, WARD - 3(3), KOLKATA , KOLKATA