Amit Agarwal Vs ITO (ITAT Delhi)
Delhi ITAT Deletes ₹14-Lakh Bogus-Purchase Addition: Third-Party Search Statement Actually Established Genuineness of Supplier
The Delhi ITAT deleted the ₹14,00,672 disallowance under Section 37 relating to cement purchased from Forever Exim India Pvt. Ltd. The addition was based principally on information appearing on the Income-tax Department’s Insight Portal and the search statement of Sanjay Jain, who was allegedly engaged in providing accommodation entries.
The Tribunal found that the material relied upon by the Department actually supported the assessee’s case. Sanjay Jain had specifically stated that transactions involving Forever Exim India Pvt. Ltd. were genuine cement transactions; the supplier was not included in his list of bogus entities, and the assessee’s name did not appear among the beneficiaries of accommodation entries. Further, the Insight Portal contained no adverse information concerning this supplier.
The purchases were supported by tax invoices containing vehicle details, GSTR-2A records, books of account and the underlying work order from Urja Interiors. The supplier was also shown as an active company on the MCA portal, and the AO had not rejected the assessee’s books under Section 145(3). Holding that the addition was made on third-party information without independent application of mind, the Tribunal ruled that the assessee had fully discharged the burden of proving the purchases and directed complete deletion of the disallowance.
FULL TEXT OF THE ORDER OF ITAT DELHI
