ITO Vs Shiv Shankar Rice Mills (ITAT Delhi)
The ITAT Delhi dismissed the Revenue’s appeal and upheld the CIT(A)’s order deleting major additions made in reassessment proceedings against a rice mill firm. The AO had made additions of ₹8.28 crore treating purchases and sales as bogus u/s 68, ₹39.70 lakh towards unsecured loans, and ₹55.90 lakh for sundry creditors. The Tribunal noted that the assessee had furnished extensive documentary evidence including purchase/sale bills, stock registers, transport bilty, VAT returns, bank statements and RTGS details showing movement of goods and genuineness of transactions (as discussed in detail from pages 3–8 of the order). Since the AO neither rejected books u/s 145(3) nor pointed out specific defects, addition of sales and purchases was held unsustainable and also amounted to double taxation.
With respect to unsecured loans, identity, creditworthiness and genuineness were established through PAN, ITRs, bank statements and source explanations such as LIC maturity proceeds, and the AO failed to rebut these documents. Similarly, addition of sundry creditors was deleted as confirmations, bills and payment details were furnished and separate addition would lead to duplication where purchases were already examined. Accordingly, the Tribunal confirmed deletion of all additions and dismissed the Revenue’s appeal; the assessee’s cross-objection became infructuous.
FULL TEXT OF THE ORDER OF ITAT DELHI
