Neogenetics Foods Private Limited Vs DCIT (ITAT Bangalore)
From the perusal of the final Assessment Order (paragraph 4.5) it is clear that the only reason given by the AO for not accepting the genuineness of the transaction with M/s. Manoj Traders and M/s. K. S. Enterprises is failure of the assessee to furnish copy of stock register. In our view, this cannot be a proper reason for rejecting the claim of the assessee when the confirmation letter, purchase register along with sample invoices were furnished by the assessee. The learned Counsel for the assessee also submitted that payments have been made to all the 3 parties and that evidence would demonstrate that the trade creditors were genuine. Taking into account these circumstances, we are of the view that it would be just and appropriate to set aside the issue with regard to the addition of Rs.52,87,093/- to the AO for consideration afresh in the light of the evidence already filed by the assessee and also in the light of the further evidence that the assessee may file with regard to repayment of the trade credits. The AO is directed to consider the claim of the assessee in accordance with law, after affording assessee opportunity of being heard.
FULL TEXT OF THE ORDER OF ITAT BANGALORE
This is an appeal by the assessee against the final order of assessment dated 27.05.2021 passed by the (National Faceless Assessment Centre “NFAC”), Delhi, DCIT, Circle-3(1)(1), Bengaluru, passed u/s. 144C r.w.s. 143(3) of the Income-tax Act, 1961 [the Act] relating to assessment year 2016-17.
2. The assessee is engaged in the business of manufacturing and trading of animal feeds. Out of total sales of Rs. 253.02 crores, trading sales is Rs.160.23 crores (63.32% is trading sales). The assessee during the relevant previous year entered into transactions with related parties which were in the nature of specific domestic transactions (STD) within the meaning of Section 92BA of the Act.
3. The details of Specified Domestic Transactions entered during the year were as follows:
