ITO Vs Jaideep Metallics And Alloys Pvt Ltd. (ITAT Mumbai)
ITAT Mumbai held that CIT(A) rightly deleted addition towards bogus purchases since assessee proved genuineness of purchases by submitting various details/ documents. Accordingly, appeal of the revenue dismissed.
Facts- the Assessee is a resident private limited company engaged in the business of manufacturing various steel products including products such as TMT bars and MS Billets. Notice dated 15/12/2022 was issued to the assessee contesting that why purchases made from the following non-filers of return of income aggregating to INR.96,46,56,734/- should not be disallowed and added to the income of the Assessee. Due to non-response to notice issued u/s. 133(6) by AO to the vendors, AO made addition of INR 94,30,14,937/- holding purchases as bogus.
CIT(A) deleted the addition. Being aggrieved, revenue has preferred the present appeal.
Conclusion- In order to support the contention that aforesaid purchases were genuine in nature, it was submitted on behalf of the Assessee that the Assessee had declared gross profit margin of 10% for the relevant assessment year as per the tax audit report in Form 3CD. It is not the case of the Revenue that the purchases were not entered in the books of accounts or that the payment for the purchases under consideration was made in cash. We note that the Assessing Officer has not rejected the books of accounts of the Assessee. The quantitative details of raw material and products manufactured/sold by the Assessee as well as the figures of sales and opening/closing stock contained in the audited financial statements and tax audit report have also not been doubted by the Assessing Officer.
