The ACIT, Jalandhar V. M/s. ATM Forgings, Jalandhar

ITA 117/ASR/2006

• Counselvise Citation: 11720914 RSA 2006
• Duration Of Justice: 8 year(s) 6 month(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-11-2014
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 13-11-2014
• Assessment Year: 2002-2003
• Appeal Filed On: 01-05-2006
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Assessee Lawyers: RAVISH SOOD
• Keywords: Bogus purchase; Depreciation; Sham transactions
• Section: 43B; 133(6)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AMRITSAR BENCH; AMRITSAR. BEFORE SHRI A.D. JAIN, JUDICIAL MEMBER AND SHRI B.P.JAIN, ACCOUNTANT MEMBER I.T.A. NO.91(ASR)/2006 A.Y. 2002-03 M/S ATM FORGINGS, VS. ASSTT. COMMISSIONER OF INCOM E TAX D-163, FOCAL POINT, RANGE-II, JALANDHAR. JALANDHAR. (PAN: AADFA 8276 M) I.T.A. NO.117(ASR)/2006 A.Y. 2002-03 ASSTT. COMMISSIONER OF INCOME TAX VS. M/S ATM FORG INGS, RANGE-II, JALANDHAR. D-163, FOCAL POINT, JALANDHAR. (PAN: AADFA 8276 M) (APPELLANTS) (RESPONDENTS) ASSESSEE BY: SHRI RAVISH SOOD, ADVOCATE REVENUE BY: SHRI TARSEM LAL, D.R. DATE OF HEARING : 13.11.2014 DATE OF PRONOUNCEMENT : 27.11.2014 ORDER PER B.P. JAIN, ACCOUNTANT MEMBER: THESE CROSS APPEALS OF THE ASSESSEE AND REVENUE AR ISE FROM THE ORDER OF THE LD. COMMISSIONER OF INCOME TAX (APPELS), JAL ANDHAR DATED 31.01.2006 FOR THE ASSESSMENT YEAR 2002-03. 2. THE ASSESSEE HAS RAISED THE FOLLOWING GROUNDS OF APPEAL: ITA NOS.91 & 117(ASR)/2006 A.Y. 2002-03 2 1. THAT WORTHY CIT(A), JALANDHAR ALLOWED RELIEF OF RS.3,62,206/- ON ACCOUNT OF ELECTRIC REPAIR DEBITED IN PROFIT & LOSS A/C, OUT OF TOTAL DISALLOWANCE OF RS.7,76,915/ -, CALCULATING THE PROPORTIONATE INCREASE IN SALES VIS--VIS EXPEN SES AND WRONGLY CONFIRMED THE ADDITION OF RS.4,14,709/- ON ACCOUNT OF PURCHASE MADE FROM RAJIV ELECTRIC TRADING CO. 2. THAT WORTHY CIT(A), JALANDHAR HAS WRONGLY CONFIR MED THE ADDITION OF RS.18,15,189/- ON ACCOUNT OF PURCHA SES MADE FROM KRISHNA HARDWARE & MILL STORE AND ALLOWED RELI EF OF RS.4,00,000/- ONLY OUT OF TOTAL ADDITION OF RS.17,3 5,064/- ON ACCOUNT OF DISALLOWANCE OF CONSUMABLE ACCOUNT AND RS.4,80,125/- ON ACCOUNT OF DEPRECIATION OF MACHINE RY. 3. THAT APPELLANT REQUESTS FOR LEAVE TO ADD OR AMEN D THE GROUND OF APPEAL BEFORE THE APPEAL IS HEARD AND DIS POSED OFF. 3. THE REVENUE HAS RAISED THE FOLLOWING GROUNDS OF APPEAL: 1. THAT ON THE FACTS AND IN THE CIRCUMSTANCES OF T HE CASE AND IN LAW, THE LD. CIT(A) HAS ERRED IN DELETING TH E ADDITION AMOUNTING TO RS.7,76,915/- (CORRECT FIGURE RS.7,62, 206/-) OUT OF TOTAL ADDITION OF RS.29,92,485/- MADE BY PROVING TH E PURCHASES CLAIMED TO HAVE BEEN MADE FROM M/S KRISHNA HARDWARE & MILL STORE AND M/S RAJIV ELECTRIC TRADING CO. TO BE BOGU S PURCHASES AND HENCE SHAM TRANSACTIONS. THE LD. CIT(A) HAS NO T APPRECIATED THAT ENOUGH MATERIAL HAS BEEN BROUGHT O N RECORD TO DISPROVE THE CLAIM OF THE ASSESSEE AS REGARDS PU RCHASES MADE FROM THESE CONCERNS. 2. THAT, ON THE FACTS AND IN THE CIRCUMSTANCES OF T HE CASE AND IN LAW, THE LD. CIT(A) HAS ERRED IN DELETING TH E ADDITION AMOUNTING TO RS.1,49,429/- MADE ON ACCOUNT OF LATE PAYMENT OF ESI AND EPF AS THE DECISION RELIED UPON BY HIM IS N OT APPLICABLE TO THE FACTS OF THE CASE. 3. THAT, IT IS PRAYED THAT THE ORDER OF THE LD. CIT (A) BE SET- ASIDE AND THAT OF THE ASSESSING OFFICER RESTORED. ITA NOS.91 & 117(ASR)/2006 A.Y. 2002-03 3 4. THAT APPELLANT REQUESTS FOR LEAVE TO ADD OR AMEN D OR ALTER THE GROUNDS OF APPEAL BEFORE THE APPEAL IS HE ARD AND DISPOSED OFF. 4. AS REGARDS GROUND NO.1 & 2 OF THE ASSESSEE AND G ROUND NO.1 OF THE REVENUE, THE BRIEF FACTS OF THE CASE ARE THAT THE A SSESSEE HAS CHARGED A SUM OF RS.15,14,709/- UNDER THE HEAD ELECTRICAL REPAIRS WHICH WAS RS.8,47,094/- IN THE PRECEDING YEAR. ON EXAMINATION OF THE PURCH ASE BILLS FROM M/S RAJIV ELECTRIC TRADING COMPANY, JALANDHAR, THE ASSESSEE W AS ASKED TO FURNISH COPIES OF ACCOUNTS IN THE BOOKS OF ACCOUNT OF M/S R AJIV ELECTRIC TRADING COMPANY. THE STATEMENT SUBMITTED WAS AS UNDER :- I AM NOT MAINTAINING ANY BOOKS OF A/C SO I HEREBY CERTIFY THE LEDGER A/C OF M/S ATM FORGING AS TO BE CORRECT & TR UE STATEMENT OF AFFAIRS FOR F.Y. 2001-02. SIR, I HAVE CLOSED FIRM M/S RAJIV ELECTRICAL TRADIN G CO. AND PRESENTLY WORKING AS PROPRIETOR OF M/S FRIENDS ELEC TRICAL, FOCAL POINT MARKET, FOCAL POINT, JALANDHAR. 5. SIMILARLY, WITH REGARD TO PURCHASE FROM M/S KRIS HNA HARDWARE & MILL STORE, THE PURCHASES WERE MADE AND ON BEING ASKED TO FURNISH C OPIES OF ACCOUNTS, THE ACCOUNT WAS SUBMITTED AS UNDER :- SIR, SINCE I HAVE NOT KEPT ANY BOOKS OF A/C; BUT O NLY THE VOUCHERS. AS SUCH I CERTIFY THE COPY OF MY A/C AS APPEARING IN T HE BOOKS OF M/S A.T.M. FORGING FOR THE PERIOD ENDING 31.3.02 AS TO BE CORR ECT & TRUE. I HAVE CLOSED MY SHOP AT SHIVPURI MARKET POPULARLY KNOWN AS SHIV MARKET. I HAVE CLOSED DOWN MY BUSINESS BECAUSE OF L OSSES AND PRESENTLY IN SERVICE. ITA NOS.91 & 117(ASR)/2006 A.Y. 2002-03 4 6. COPIES OF ACCOUNTS OF THE ASSESSEE APPEARING IN THE BOOKS OF RESPECTIVE CONCERNS WERE SOUGHT VIDE REQUISITIONS DATED 02.02.2005 UNDE R SECTION 133(6) AND THE INSPECTOR SUBMITTED THE REPORTS DATED 02.02.2005 WHICH ARE RE PRODUCED HEREIN BELOW:- DATED: 02.02.2005 REGARDING :- SERVICE OF NOTICE U/S 133(6) ON M/S RA JIV ELECTRIC TRADING CO., DADA COLONY CHOWK, JALANDHAR AS DIRECTED I WENT TO EFFECT THE SERVICE OF ABOVE M ENTIONED NOTICE TODAY. ON MAKING LOCAL ENQUIRIES IT HAS TRANSPIRED THAT THERE IS NO CONCERN IN THE NAME OF M/S RAJIV ELECTRIC TRADING C O. AT THE ABOVE STATED AREA. I ALSO CONTACTED THE PRESIDENT ELECTRIC GOOD S MANUFACTURERS AND HE CONFIRMED THAT THERE IS NO SUCH FIRM IN DADA COLONY OR INDL. AREA. REGARDING PHONE NO.2293509 GIVEN ON THE LETTER HEAD OF THE ABOVE CONCERN, ON DIALING THIS NO. THE RESPONSE IS PLEAS E CHECK THE NO. YOU HAVE DIALED. THE MOBILE NO.8140-01340 GIVEN ON TH E LETTER HEAD IS IN THE NAME OF SHRI DALBIR SINGH, JAGRAON WHO HAS CONF IRMED THAT HE HAS NOTHING TO DO WITH M/S RAJIV ELECT. DATED:- 02.02.2005 REGARDING:- SERVICE OF NOTICE U/S 133(6) ON M/S KR ISHNA HARDWARE & MILL STORE, SHIV MARKET, G.T. ROAD. BYEPASS, JALAND HART. AS DIRECTED I WENT TO EFFECT THE SERVICE OF ABOVE S AID NOTICE TODAY. LOCAL ENQUIRIES HAVE REVEALED THAT THERE IS NO SUCH CONCERN IN THE SHIV MARKET, G.T. ROAD, BYEPASS, JALANDHAR. REGARDING P HONE NO.2611509 GIVEN ON ITS LETTER HEAD, ENQUIRIES HAVE REVEALED T HAT THE ABOVE TELEPHONE IS IN THE NAME OF M/S BABA DEEP SINGH INDS., INDL. ESTATE, JAL. STATEMENT OF SH GURJIVAN SINGH, PARTNER OF M/S BABA DEEP SING H INDS. IN THIS REGARD IS ENCLOSED HEREWITH FOR YOUR KIND PERUSAL. HE HAS ALSO DENIED HAVING ANY KNOWLEDGE ABOUT M/S KRISHNA HARDWARE & MILL STORE. 7. THE ASSESSEE FURNISHED EXPLANATION WHICH IS REPR ODUCED FOR THE SAKE OF CONVENIENCE AS UNDER :- .SIR, DURING THE COURSE OF ASSESSMENT PROCEEDINGS , YOUR GOODSELF ASKED TO FILE COPY OF ACCOUNT OF M/S RAJIV ELECTRICAL TRADING CO AND M/S KRISHNA HARDWARE & MACHINERY CO. WHICH WERE FILED AND THEREAFTER STATEMENT OF BOTH THESE PARTIES WERE ALS O RECORDED WHEREIN THEY ACCEPTED THE TRANSACTION WITH THE ASSESSEE VIS--VI S CONFIRMED THE COPY OF ACCOUNT FILED BY THE ASSESSEE. SIR, IT IS, THEREFORE, INCORRECT TO PRESUME THE TRA NSACTION WITH THESE CONCERNS WERE BOGUS TO INFLATE PURCHASES. IT WAS N EVER THE INTENTION OF ITA NOS.91 & 117(ASR)/2006 A.Y. 2002-03 5 ASSESSEE TO REDUCE TAX LIABILITY. ASSESSEE FILED I TS TRUE AND CORRECT RETURN OF INCOME ON THE BASIS OF AUDITED BOOKS OF ACCOUNTS . IT IS REQUESTED THAT NO ADVERSE INFERENCE MAY KINDLY BE DRAWN ON ACCOUNT OF TRANSACTION WITH THE PARTIES MENTIONED IN YOUR LETTER SINCE ASSESSEE MADE GENUINE TRANSACTION WITH THEM AND DULY PURCHASED GOODS FROM THESE PARTIES. 8. ON ENQUIRY, THE A.O. BROUGHT ON RECORD THAT PAYM ENTS HAVE ADMITTEDLY BEEN DECLARED BY THE ASSESSEE TO HAVE BEEN MADE IN CASH TO M/S RAJIV ELECTRIC TRADING CO. AND ITS SALES TAX NUMBER MENTIONED ON SALE VOUCHER IN F ACT DOES NOT EXIST AND NO SALES TAX RETURN HAS EVER BEEN FILED BY THE SAID CONCERN. NO BOOKS OF ACCOUNT WERE MAINTAINED BY M/S RAJIV ELECTRIC TRADING CO. THE BILL DOES NOT C ONTAIN ANY DESCRIPTION OF GOODS AND THE ASSESSEE HAS FAILED TO SUBSTANTIATE CONSUMPTION OF GOODS IN THE ABSENCE OF ANY DOCUMENTARY EVIDENCE OR RECORD. M/S RAJIV ELECTRIC TRADING CO. IS NOT ASSESSED TO INCOME TAX. IN VIEW OF THE FACTS, THE A.O. CONCLUD ED THAT IT IS APPARENT THAT THERE EXIST NO SUCH CONCERN IN THE NAME OF M/S RAJIV ELECTRIC TRAD ING CO. AND FICTITIOUS/BOGUS PURCHASES ARRANGED BY THE ASSESSEE IN ORDER TO REDU CE ITS INCOME WITH A VIEW TO EVADE ITS PROPER TAX LIABILITY HAS BEEN DEBITED IN THE BOOKS OF ACCOUNT AND AS SUCH THE ALLEGED TRANSACTION IS NOTHING BUT A SHAM TRANSACTION AND A CCORDINGLY THE EXPENDITURE OF RS.7,76,915/- CLAIMED BY THE ASSESSEE WAS DISALLOWE D AND ADDED TO THE INCOME OF THE ASSESSEE. 9. AS REGARDS KRISHNA HARDWARE & MILL STORE, THE FA CTS ARE ALMOST IDENTICAL WITH THE FACTS IN THE CASE OF M/S RAJIV ELECTRIC TRADING CO. AND THE FINDING OF THE A.O. SUMMARIZED AT PAGE NOS.9 & 10 ARE REPRODUCED FOR TH E SAKE OF CONVENIENCE AS UNDER :- (I) THERE WAS NO SHOP EVER AT THE GIVEN ADDRESS IN THE NAME OF M/S KRISHNA HARDWARE & MILL STORE. (II) SHRI RAKESH CHADHA IS A PETTY EMPLOYEE OF THE ASSESSEE/ITS SISTER CONCERNS. ITA NOS.91 & 117(ASR)/2006 A.Y. 2002-03 6 (III) THE PARTNERS OF THE FIRM HATCHED A CRIMINAL C ONSPIRACY TO UNDERMINE THE INCOME OF THE FIRM. FOR THIS PURPOSE , THE ABOVE ACCOUNT WAS OPENED IN THE NAME OF A PETTY EMPLOYEE OF THE G ROUP. THE ACCOUNT WAS DULY INTRODUCED BY SHRI ASHOK KUMAR, ONE OF THE PARTNERS. THE ACCOUNT WAS OPENED IN THE SAME BANK IN WHICH THE FI RM WAS HAVING ITS ACCOUNT. (IV) BILLS IN THE NAME OF KRISHNA HARDWARE & MILL STORE WERE GOT PRINTED AND BOGUS PST/CST NO., PHONE NO., ADDRESS E TC. WERE MENTIONED ON THE SAME. (V) PURCHASES WERE SHOWN ON THESE BILLS. ACTUALLY, NO SUCH PURCHASES WERE EVER MADE AND NO SUCH GOODS WERE EVER CONSUMED IN THE FACTORY. (VI) AS ON 27.08.2001, THERE IS A CREDIT BALANCE OF RS.15.26 LACS IN THE NAME OF THIS CONCERN. SHRI RAKESH CHADHA HAD NO CA PACITY TO GIVE SUCH HUGE CREDIT AND HAD NO GOOD-WILL OR CREDIT-WORTHINE SS HIMSELF TO OBTAIN GOODS ON CREDIT FORM OTHERS. (VII) SHRI RAKESH CHADHA HAS MISERABLY FAILED TO PR ODUCE ANY EVIDENCE REGARDING GOODS PURCHASED OR EVEN THE FACT THAT HE HAD EVER DONE SUCH A BUSINESS. HE HAS HIMSELF ADMITTED VARIOUS DETAILS ON THE BILLS AS BEING BOGUS. (VIII) SIGNATURES ON THE BILLS ARE NOT OF THIS PERS ON. WITHDRAWALS FROM THE BANK HAVE ALSO NOT BEEN MADE BY THIS PERSON. I N FACT, HE MAY NOT EVEN HAVE BEEN AWARE THAT THE ACCOUNT WAS BEING USED IN THIS MANNER. (IX) THE PARTNERS OF THE FIRM USED THIS ACCOUNT AS BENAMI AND OPERATED THE ACCOUNT THEMSELVES. THE EXACT AMOUNT OF CASH H AS BEEN WITHDRAWN ON THE SAME DATE OR SOON THEREAFTER. (X) IT IS NOT POSSIBLE THAT A FIRM HAVING A TURNOVE R EXCEEDING RS.10 CRORES WOULD BE SO NAVE AS TO PURCHASE ELECTRIC MO TORS AND OTHER ITEMS AS WELL AS CONSUMABLES FROM A PERSON HAVING NEITHER AN Y WORTH NOR EXPERIENCE IN THIS LINE AND NOT FROM A REPUTED DEAL ER. IN FACT THERE ARE INDEED PURCHASES FROM REPUTE DEALERS LIKE M/S EMM K AY ELECTRICALS ETC. JUST A COMPARISON BETWEEN A BILL OF THIS CONCERN AN D A BILL OF KRISHNA HARDWARE & MILL STORE IS SUFFICIENT TO SHOW WHAT A N ACTUAL BILL IS LIKE AND WHAT A BOGUS BILL IS LIKE. (XI) SHRI RAKESH CHADHA AS WELL AS THE ASSESSEE HAV E UTTERLY FAILED TO LEAD ANY EVIDENCE TO PROVE THE GENUINENESS OF THESE TRANSACTIONS. SHRI RAKESH CHADHA, IN HIS STATEMENT HAS DROPPED A FEW N AMES FROM WHOM HE ALLEGEDLY MADE PURCHASES. REGARDING WITHDRAWALS FR OM THE BANK, IT WAS STATED THAT SOME OF THE CASH WITHDRAWALS WERE MADE BY LUDHIANA BASED PARTIES. NONE OF THESE SUBMISSIONS ARE SUPPORTED B Y ANY EVIDENCE. THE WITHDRAWALS FROM THE ACCOUNT ARE SUBSTANTIAL. THE LEAST WITHDRAWAL IS OF RS.3.50 LACS. THERE IS A SINGLE CASH WITHDRAWAL OF RS.23 LACS ON ITA NOS.91 & 117(ASR)/2006 A.Y. 2002-03 7 23,02.2002. IT IS NOT PROBABLE THAT THE ALLEGED LU DHIANA BASED PARTIES WOULD HAVE ALLOWED SO MUCH OF CREDIT TO THIS PERSON AND ACCEPTED PAYMENT IN LUMP SUM IN CASH LATER BY MAKING WITHDRA WALS FROM THE BANK DIRECTLY. OBVIOUSLY, HE HAS MADE THESE SUBMISSIONS AFTER BEING TUTORED BY THE ASSESSEE AND HIS COUNSEL. THE FACT IS THAT HE IS A PETTY EMPLOYEE WHOSE NAME HAS BEEN USED BY THE ASSESSEE FOR ITS OWN GAIN S. EVEN OTHERWISE, ENTIRE SUBMISSIONS ARE WITHOUT ANY SUPPORTING EVIDE NCE. THE ASSESSING OFFICER CAN NOT BE EXPECTED TO EMBARK UPON A BLIND CHASE ON THE BASIS OF WHATEVER IS THROWN AT HIM BY THE ASSESSEE. 10. ACCORDINGLY, IN HE CIRCUMSTANCES AND FACTS OF T HE CASE, THE A.O. MADE ADDITION OF RS.17,35,064/- AND RS.4,80,125/- ON ACCOUNT OF DEPR ECIATION @ 25% ON RS.19,20,500/-. 11. THE LD. CIT(A) ON APPRECIATION OF FACTS ALLOWED RELIEF OF RS.3,62,206/- ON ACCOUNT OF PURCHASE FROM M/S RAJIV ELECTRIC TRADING CO. AND RS.4,00,00/- IN THE CASE OF PURCHASE FROM KRISHNA HARDWARE & MILL STORE KEEPING IN VIEW THE PROPORTIONATE INCREASE IN THE EXPENDITURE TO BRING IT COMMENSURATE WITH THE PERCE NTAGE INCREASE IN THE SALES AS COMPARED TO THE LAST YEAR. 12. THE LD. COUNSEL FOR THE ASSESSEE SHRI RAVISH SO OD, ADVOCATE RELIED UPON THE SUBMISSIONS MADE BEFORE THE A.O. AND THE LD. CIT(A) AND ARGUED THAT THE PURCHASES MADE FROM THE SAID CONCERNS ARE GENUINE. THE ASSESSEE H AS SUBMITTED COPY OF ACCOUNTS DULY CONFIRMED FROM THE SAID PARTIES I.E. M/S RAJIV ELEC TRIC TRADING CO. AND M/S. KRISHNA HARDWARE & MILL STORE. THE SAID PARTIES HAVING CON FIRMED THE LEDGER ACCOUNT OF THE ASSESSEE AND, THEREFORE, NO ADDITION SHOULD HAVE BE EN MADE BY THE A.O. AND THE ADDITION SUSTAINED BY THE CIT(A) BE DIRECTED TO BE DELETED W AS ACCORDINGLY PRAYED. 13. LD. DEPARTMENTAL REPRESENTATIVE SHRI TARSEM LAL , ON THE OTHER HAND, ARGUED THAT THE ALLEGED PARTIES M/S RAJIV ELECTRIC TRADING CO., JALANDHAR AND M/S. KRISHNA HARDWARE ITA NOS.91 & 117(ASR)/2006 A.Y. 2002-03 8 & MILL STORE, JALANDHAR ARE FICTITIOUS PARTIES AND TRANSACTIONS ARE SHAM TRANSACTIONS. SINCE THE SAID PARTIES WERE NOT PRODUCED BY THE ASS ESSEE BEFORE THE A.O. ON ONE HAND AND AS PER THE STATEMENTS OF THE SAID PARTIES, THEY ARE NOT MAINTAINING ANY BOOKS OF ACCOUNT AND ALL THE PAYMENTS HAVE BEEN DECLARED TO HAVE BEE N MADE IN CASH. NO EVIDENCE HAS BEEN PLACED ON RECORD BY THE ASSESSEE THAT THE GOOD S HAVE BEEN PURCHASED FROM THE SAID CONCERNS. THE ASSESSEE HAS NOT CO-OPERATED IN THE ASSESSMENT PROCEEDINGS. MOREOVER, THE ASSESSEE HAS NOT PROVED THE CONSUMPTION OF THE GOODS PURCHASED. WITH RESPECT TO M/S KRISHNA HARDWARE & MILL STORE, NO EVIDENCE FOR SOUR CE OF GOODS PURCHASED AND FURTHER SUPPLIED TO THE ASSESSEE HAS EVER BEEN MADE AND PLA CED ON RECORD. IN FACT THE BILLS HAVE BEEN PRINTED BY THE ASSESSEE TO SHOW THE SALES BY T HOSE CONCERNS TO THE ASSESSEE. THE PARTNERS OF THE FIRM HAVE USED THESE ACCOUNTS AS BE NAMI AND THE SPECIFIC AMOUNT OF CASH HAS BEEN WITHDRAWN ON THE SAME DATE OR SOON THEREAF TER ON WHICH CHEQUES HAVE BEEN DEPOSITED IN THE CONCERN BY THE ASSESSEE. THERE AR E NO OTHER PAYMENTS TO ANY OTHER PERSONS AS ONE WOULD HAVE DONE IN THE NORMAL BUSINE SS. THE SAID CONCERNS WERE NOT HAVING ANY PST/CST NUMBERS OR NOT ASSESSED TO INCOM E TAX. IN THE CIRCUMSTANCES AND FACTS OF THE CASE, THE LD. DEPARTMENTAL REPRESENTAT IVE PRAYED TO CONFIRM THE ORDER OF LD. CIT(A) AND TO REVERSE THE ORDER OF LD. CIT(A) WITH REGARD TO THE RELIEF ALLOWED. 14. WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE RECORDS OF THE CASE. THERE IS NO DISPUTE TO THE FACTS AS REGARDS THE ARGUMENTS MA DE BY THE LD. COUNSEL FOR THE ASSESSEE THAT THE PURCHASES HAVE BEEN DEBITED AS PER BILLS O N RECORD BUT THERE ARE MANY DEFICIENCIES IN THE BILLS AS RECORDED BY THE A.O. IT IS ALSO NOT UNDER DISPUTE THAT THE PAYMENTS DECLARED TO HAVE BEEN MADE TO SUCH PARTIES HAVE BEEN WITHDRAWN ON THE SAME DATE OR SOON THEREAFTER AND THE SAME HAS NOT BEEN R EBUTTED BY THE LD. COUNSEL FOR THE ITA NOS.91 & 117(ASR)/2006 A.Y. 2002-03 9 ASSESSEE. THE SAID PARTIES WERE NOT AVAILABLE FOR EXAMINATION BY THE A.O. AND THEY HAVE NOT AT ALL CO-OPERATED IN THE ASSESSMENT PROCEEDING S EXCEPT THE LEDGER ACCOUNT SUBMITTED BY THE ASSESSEE HAVE BEEN CONFIRMED. SIMPLE CONFIR MATION ON THE LEDGER ACCOUNT AND CONFIRMATION OF SALES TO THE PARTIES IN THE ABSENCE OF ANY FILING OF RETURN OF INCOME TAX OR SALES TAX RETURN AND WITHOUT HAVING ANY PAN/CST/PST NUMBERS AND THE SAID PARTIES HAVING NO BOOKS OF ACCOUNT OR ANY EXPLANATION OFFER ED OR ANY EVIDENCE OF HAVING CONSUMED THE GOODS BY THE ASSESSEE, THE PURCHASES C ANNOT BE SAID TO BE PROVED ESPECIALLY IN THE ABSENCE OF ANY CONSUMPTION SHOWN BY THE ASSE SSEE ON THE ALLEGED PURCHASES DEBITED IN THE BOOKS OF ACCOUNT. IT WILL BE TOO EA RLY TO CONCLUDE THAT THE SAID PURCHASES ARE SHAM IN THE ABSENCE OF ANY VERIFICATION OR EXAM INATION OF M/S RAJIV ELECTRIC TRADING CO. AND M/S KRISHNA HARDWARE & MILL STORE AND THEIR BOOKS OF ACCOUNT AND RECORDS AND WHETHER AT ALL GENUINE PURCHASES HAVE BEEN MADE OR NOT. THEREFORE, IN THE INTEREST OF JUSTICE, MATTER IS SET ASIDE TO THE FILE OF A.O. TO FIND THE GENUINENESS OF THE PURCHASES/GENUINENESS OF THE PARTIES FROM WHOM THE PURCHASES ARE CLAIMED TO HAVE BEEN MADE. THE ASSESSEE IS DIRECTED TO CO-OPERATE IN TH E ASSESSMENT PROCEEDINGS AND ACCORDINGLY THE MATTER IS SET ASIDE TO THE FILE OF A.O. WITH THE DIRECTIONS HEREINABOVE AND WITH THE DIRECTION TO PROVIDE SUFFICIENT OPPORTUNIT Y OF BEING HEARD TO THE ASSESSEE. THE ASSESSEE IS AT LIBERTY TO ADDUCE ANY EVIDENCE TO PR OVE THE GENUINENESS OF THE PARTIES AND GENUINENESS OF THE PURCHASES. ACCORDINGLY, GROUND NOS.1 & 2 OF THE ASSESSEE AND GROUND NO.1 OF THE REVENUE ARE ALLOWED FOR STATISTICAL PUR POSES WITH THE DIRECTIONS CONTAINED HEREINABOVE. 15. IN RESPECT OF GROUND NO.2 OF THE REVENUE, BRIEF FACTS OF THE CASE ARE THAT THE A.O. DISALLOWED RS.1,49,429/- ON ACCOUNT OF ESI AND EPF. SINCE PAYMENT HAD BEEN MADE ITA NOS.91 & 117(ASR)/2006 A.Y. 2002-03 10 BEYOND THE STATUTORY PERIOD, THE LD. CIT(A) DELETED THE SAME FOR THE REASONS MENTIONED IN HIS ORDER. 16. WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE RECORDS OF THE CASE. WE FIND NO INFIRMITY IN THE ORDER OF LD. CIT(A) AS THE CONT RIBUTIONS BY EMPLOYEES ARE REGULATED BY SECTIONS 2(24)(X) R.W.S. 36(1)(VA) OF I.T. ACT THAN UNDER SECTION 43B OF I.T. ACT. BUT IN THE LIGHT OF DECISION OF ITAT, DELHI C BENCH IN T HE CASE OF ADDL. CIT VS. VESTAS RRB INDIA LIMITED DATED 28.05.2004 REPORTED IN (2005) 9 3 TTJ (DEL) 144, ONE OF THE ISSUE IN THAT CASE BEING OF ADDITION UNDER SECTION 2(24)(X) OF IT ACT, THE DEPOSIT OF EMPLOYEES CONTRIBUTION TO PF ETC. IN THIS CASE AS IN THAT CAS E BEING LATE, BUT BEFORE THE DUE DATE OF RETURN, THE SAME IS ELIGIBLE AS DEDUCTION AS PER TH E SAID DECISION. THUS, THE ASSESSEE HAS RIGHTLY BEEN ALLOWED RELIEF OF RS.1,49,429/-. ACCOR DINGLY, GROUND NO.2 OF THE REVENUE IS DISMISSED. 17. IN THE RESULT, APPEAL OF THE ASSESSEE IN ITA NO .91/ASR/2006 IS ALLOWED FOR STATISTICAL PURPOSES AND APPEAL OF THE REVENUE IN I TA NO.117/ASR/2006 IS PARTLY ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 27.11.2014. SD/- SD/- (A.D. JAIN) (B.P. JAIN) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 27 TH NOVEMBER, 2014 PBN/* ITA NOS.91 & 117(ASR)/2006 A.Y. 2002-03 11 COPY OF THE ORDER FORWARDED TO: 1. THE ASSESSEE: M/S. ATM FORGINGS, D-163, FOCAL POI NT, JALANDHAR. 2. A.C.I.T., RANGE-II, JALANDHAR 3. THE CIT(A), 4. THE CIT, 5. THE D.R., I.T.A.T., TRUE COPY BY ORDER (ASSISTANT REGISTRAR) INCOME TAX APPELLATE TRIBUNAL, AMRITSAR BENCH: AMRITSAR.