The ITO, Ward-4(2), Ahmedabad V. M/s. Komal Amin Exports Pvt.Ltd., Ahmedabad

ITA 1366/AHD/2011

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 80400 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 4 month(s) 20 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-09-2014
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Next Hearing Date: 23-09-2014
• Assessment Year: 2007-2008
• Appeal Filed On: 10-05-2011
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MK SINGH
• Assessee Lawyers: S N DIVETIA
• Keywords: Bogus purchase; Business income; Corroborative evidences

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH, AHMEDABAD , 00 ' , #$ # % BEFORE SHRI MUKUL KR. SHRAWAT, JUDICIAL MEMBER AND SHRI N.S. SAINI, ACCOUNTANT MEMBER ./ ITA NO. 1366/AHD/2011 ( )(/ ASSESSMENT YEAR: 2007-08 THE INCOME TAX OFFICER, WARD 4(2), AHMEDABAD VS KOMAL AMIN EXPORTS (P.) LTD. , 309-310, SHANTI ARCADE, NR. SAHJANAND COLLEGE, 132 FT. RING ROAD, AHMEDABAD PAN : AACCK 5343 B *+ / (APPELLANT) ,- *+ / (RESPONDENT) REVENUE BY : SHRI M.K. SINGH, SR. DR ASSESSEE(S) BY : SHRI S.N. DIVETIA, AR / DATE OF HEARING : 30/09/2014 / DATE OF PRONOUNCEMENT: 30 /09/2014 #./ O R D E R PER SHRI N.S. SAINI, ACCOUNTANT MEMBER: THIS IS AN APPEAL FILED BY THE REVENUE AGAINST THE ORDER OF CIT(A)-VIII, AHMEDABAD DATED 18.02.2011. THE SOLE GROUND OF APP EAL TAKEN BY THE REVENUE READS AS UNDER:- THE LD. CIT(A) VIII, AHMEDABAD, HAS ERRED IN LAW A ND ON FACTS IN DELETING THE ADDITION OF RS.58,69,299/- MADE BY THE ASSESSING OFFICER ON ACCOUNT OF BOGUS PURCHASES OF GREY CLOTHS, WITHO UT PROPERLY APPRECIATING THE FACTS OF THE CASE AND THE MATERIAL S BROUGHT ON RECORD BY THE ASSESSING OFFICER. 2. WE HAVE HEARD THE RIVAL SUBMISSIONS, PERUSED THE ORDERS OF THE LOWER AUTHORITIES AND MATERIAL AVAILABLE ON RECORD. THE ASSESSING OFFICER OBSERVED THAT THE ASSESSEE HAS SHOWN PURCHASE OF GREY CLOTHE S OF RS.58,69,299/-. ITA NO.1366/AHD/2 011 AY 2007- 08 KOMAL AMIN EXPORTS PVT LTD - 2 - 3. THE ASSESSING OFFICER, ON PERUSAL OF THE PURCHAS E BILLS, OBSERVED THAT THEY HAD INCOMPLETE ADDRESS AND WERE PREPARED BY ON E PERSON AND THAT SIGNATURE ON THE BILLS OF M/S M M TRADERS, K N TRAD ERS, NEW KAMAL TEXTILE, ARBUDA TRADERS, NAVJIVAN TEXTILE ETC. HAVE BEEN DON E BY ONE PERSON ONLY. FURTHER, ON VERIFICATION OF THE BANK ACCOUNT OF THE SUPPLIER, THE ASSESSING OFFICER ALSO OBSERVED THAT THE CREDITS IN THE SAID BANK ACCOUNT IN RESPECT OF PAYMENTS MADE BY THE ASSESSEE-COMPANY AND THERE WAS IMMEDIATE WITHDRAWAL OF CASH FROM THE BANK SUBSEQUENT TO THE DEPOSIT OF CHEQUES. THEREFORE, HE TREATED THE PURCHASES OF GRAY CLOTHES AS BOGUS AND MADE AN ADDITION OF RS.58,69,299/- TO THE INCOME OF THE ASS ESSEE. 4. ON APPEAL, THE CIT(A) DELETED THE ADDITION. 5. THE DR RELIED ON THE ORDER OF THE ASSESSING OFFI CER. 6. ON THE OTHER HAND, THE AR OF THE ASSESSEE SUPPOR TED THE ORDER OF THE CIT(A). 7. WE FIND THAT THE ASSESSING OFFICER MADE AN ADDIT ION OF RS.58,69,299/- ON ACCOUNT OF BOGUS PURCHASES OF GREY CLOTHES AS HE FOUND THAT THE BILLS OF M/S M M TRADERS, K N TRADERS, NEW KAMAL TEXTILE, AR BUDA TRADERS, NAVJIVAN TEXTILE ETC. HAD INCOMPLETE ADDRESS, WERE PREPARED BY ONE PERSON AND ALSO SIGNED BY THE SAME PERSON IN ALL THE CASES AND THAT THE CREDITS IN THE BANK STATEMENT OF THE SUPPLIERS WAS OF THE CHEQUES PAID BY THE ASSESSEE WHICH WERE IMMEDIATELY WITHDRAWN BY THEM ON THE VER Y SAME DAY. ON THESE FACTS, THE ASSESSING OFFICER HELD THAT THE ENTIRE P URCHASES OF RS.58,69,299/- AS BOGUS. 8. ON APPEAL, THE CIT(A) DELETED THE ADDITION BY OB SERVING AS UNDER:- 3.3 I HAVE CAREFULLY CONSIDERED THE ASSESSMENT OR DER, FINDINGS OF THE A.O. AS WELL AS THE SUBMISSIONS OF THE APPELLANT AN D OTHER MATERIAL AVAILABLE ON RECORD. DURING THE COURSE OF ASSESSMEN T PROCEEDINGS, THE A.O. OBSERVED THAT THE ASSESSEE HAS SHOWN GREY CLOT H PURCHASE OF RS.58,69,299. THERE IS NO OPENING AND CLOSING STOC K OF GREY CLOTH. ON ITA NO.1366/AHD/2 011 AY 2007- 08 KOMAL AMIN EXPORTS PVT LTD - 3 - VERIFICATION OF THE BILLS, THE A.O. OBSERVED THAT M OST OF THE BILLS HAVING INCOMPLETE ADDRESS AND HAVING SIGNATURE OF ONE PERS ON. THE A.O. ASKED THE ASSESSEE TO PRODUCE ALL THE GREY SUPPLIER S ALONG WITH THEIR BANK ACCOUNTS, CONTRA ACCOUNT, COPY OF RETURN OF IN COME ETC. IN RESPONSE TO THE SAME, THE ASSESSEE PRODUCED 3 PARTI ES IN THE OFFICE OF THE A.O. THE A.O. WAS NOT SATISFIED WITH THE EXPLAN ATION OFFERED BY THE SUPPLIERS AND THEREFORE, HE TREATED THE PURCHASE OF GREY CLOTH AS BOGUS AND ADDED RS. 58,69,299/- TO THE TOTAL INCOME . 3.3.1 ON THE OTHER HAND, THE LD. A.R ON BEHALF OF T HE APPELLANT STRONGLY OBJECTED THE ADDITION. HE SUBMITTED THAT T HE APPELLANT IS A PVT LTD. COMPANY ENGAGED IN THE BUSINESS OF TRADING AND EXPORTING OF COTTON AND OTHER ITEMS. THE APPELLANT HAD FILED ITS RETURN FOR A.Y. 2007-08 ON 05/10/2007 DECLARING TOTAL INCOME OF RS. 11367848/-. THE ACCOUNTS OF THE APPELLANT ARE AUDITED BY THE AUDITO RS UNDER THE COMPANY ACT AND BY THE TAX AUDITORS UNDER THE I.T. ACT. THE APPELLANT HAS FILED AUDITED ANNUAL ACCOUNTS WITH THE TAX AUDI T REPORT. IT ALSO FILED DETAIL OF INVENTORIES AND ALSO PROVIDED ALL THE REQ UIRED PAPERS, DOCUMENTS, SUPPORTING EVIDENCES AND CONFIRMATION ET C TO A.O. DURING ASSESSMENT PROCEEDINGS. 3.3.2 THE LD. A.R. ON BEHALF OF THE APPELLANT FUR THER SUBMITTED THAT THE APPELLANT HAVING EXPORT OF LARGE QUANTITY OF CO TTON, REQUIRES GREY CLOTH FOR PACKING OF THE EXPORT MATERIAL AS PER THE SPECIFIC REQUIREMENT OF THE FOREIGN BUYERS AS WELL AS GENERAL TERMS AND CONDITIONS OF EXPORT MARKETING. HE FURTHER SUBMITTED THAT OCCASIONALLY T HE APPELLANT SALES GREY CLOTH ( PACKING MATERIAL) IF NOT IMMEDIATELY R EQUIRED FOR PACKING OF EXPORT GOODS. THE APPELLANT HAS PURCHASED GREY C LOTH OF RS.5869299/- DURING THE YEAR UNDER CONSIDERATION. T HERE WAS NO OPENING STOCK OF IMPUGNED GREY CLOTH ( PACKING MATE RIAL) ON THE FIRST DAY OF THE F.Y. HOWEVER, THERE WAS CLOSING STOCK AS ON 31.3.2007 OF RS. 1675714.56 WHICH HAS BEEN SHOWN IN SCHEDULED-N OF AUDITED ANNUAL ACCOUNTS. THE APPELLANT HAS ALSO SHOWN THE S ALES OF GREY CLOTH OF RS. 12,50,310 DURING THE YEAR UNDER CONSIDERATIO N WHICH IS SHOWN IN SCHEDULE-M OF AUDITED ACCOUNTS. THE ABOVE INFORM ATION WAS SUBMITTED TO THE A.O. ALSO DURING ASSESSMENT PROCEE DINGS. HE THEREFORE, STRONGLY OBJECTED THAT THE SALE AND CLOS ING STOCK OF GREY CLOTH OF RS. 2926024/- (1250310 + 1675714) ALREADY SHOWN IN THE CREDIT/INCOME SIDE OF THE AUDITED P & L A/CS FOR TH E F.Y. 2006-07 HAS BEEN WRONGLY ADDED BY THE A.O IN THE INCOME OF THE APPELLANT. 3.3.3. THE LD. A.R. FURTHER SUBMITTED THAT THE APP ELLANT HAS CONSUMED NET GREY CLOTH OF RS. 29,43,275 AS PACKI NG MATERIAL FOR AFFECTING EXPORT SALE OF RS.181.57 CRS. THE GREY C LOTH CONSUMED IN F.Y. 2006-07 IS MERELY 0.16% OF TOTAL EXPORT SALES WHICH IS VERY REASONABLE AND JUSTIFIABLE AS COMPARED TO THE TURNO VER MADE DURING THE YEAR UNDER CONSIDERATION. THE LD. A.R. ALSO SUB MITTED THAT THE ITA NO.1366/AHD/2 011 AY 2007- 08 KOMAL AMIN EXPORTS PVT LTD - 4 - APPELLANT PROVIDED ALL THE BILLS OF GREY CLOTH PURC HASED DURING THE YEAR UNDER CONSIDERATION DURING ASSESSMENT PROCEEDINGS. THE A.O. ASKED TO PRODUCE GREY CLOTH PARTIES BEFORE HIM AND IN COMPLI ANCE TO THE SAME, THE APPELLANT HAS PRODUCED 3 PARTIES I.E PROPRIETOR OF SAMBHAV TEXTILES, M.M. TRADERS AND NAVJIVAN TEXTILES BEFORE HIM AND THEY ALL HAVE CONFIRMED THAT THEY HAVE SOLD THE IMPUGNED GRE Y CLOTH TO THE APPELLANT COMPANY, I.E. M/S KOMAL AMIN EXPORTS PVT LTD. THE APPELLANT HAS ALSO SUBMITTED THE CONFIRMATION, CONTRA ACCOUNT S ALONG WITH BANK STATEMENT OF ALL THE GREY CLOTH SUPPLIERS TO THE A. O. ALL THE PAYMENTS TO THE IMPUGNED SUPPLIERS OF GREY CLOTH HAVE BEEN M ADE BY A/C PAYEE CHEQUES ONLY. THE LD. A.R FURTHER SUBMITTED THAT TH E A.O. HAS NEITHER EXAMINED THE GREY SUPPLIERS NOR RECORDED ANY STATEM ENTS OF THOSE. HE HAS ARBITRARILY MADE ADDITION OF GREY CLOTH PURCHAS ES (PACKING MATERIAL) OF RS 5869299/-. 3.3.4 AS STATED ABOVE, IT IS OBSERVED FROM SCHED ULE-N OF THE BALANCE SHEET THAT THERE WAS CLOSING STOCK OF GREY CLOTH OF RS. 16,75,714/- AS ON 31.3.2007 . EVEN THE QUANTITATIVE DETAILS GIVEN IN THE NOTES ON ACCOUNTS ALSO SHOWS AT NO. 15(A) THAT THERE WAS CLO SING STOCK OF GREY CLOTH (PACKING MATERIAL) OF RS.16,75,714/-. ON VERI FICATION OF SCHEDULE- M AS DISCUSSED SUPRA, IT IS OBSERVED THAT THE APPEL LANT HAS SOLD THE GREY CLOTH OF RS. 12,50,310/- DURING THE YEAR UNDER CONSIDERATION AND WHICH IS CLEARLY REFLECTED IN SCHEDULE-M OF AUDITED ANNUAL ACCOUNTS. THE GREY CLOTH SALE OF RS. 1250310/- IS FURTHER REF LECTED IN QUANTITATIVE DETAILS AT SL NO. 15(B) IN NOTES ON ACCOUNTS. AS SU CH THE ADDITION OF RS. 2926074/-( 1675714 =1250310) - WHICH IS ALREADY DECLARED IN THE INCOME SIDE OF THE AUDITED P & L A/C, FOR THE RELEV ANT F.Y 2006-07, THE ADDITION MADE BY A.O. FALLS IN THE CATEGORY OF DOUB LE TAXATION AND THEREFORE DESERVES TO BE DELETED. 3.3.5 THE REMAINING AMOUNT OF GREY CLOTH (PAC KING MATERIAL) OF RS.29,43,275/- IS STATED TO BE CONSUMED BY THE APPE LLANT FOR AFFECTING THE EXPORT SALES OF 181.75 CRS. THE SUBMISSION OF T HE APPELLANT ON THIS GROUND APPEARS TOBE CONVINCING AS THE GREY CLOTH CO NSUMED IN F.Y. 2006-07 IS MERELY 0.16% OF THE TOTAL SALES WHICH AP PEARS TO BE EXTREMELY REASONABLE AND JUSTIFIABLE IN TERMS AND Q UANTUM OF TURNOVER DURING THE YEAR UNDER CONSIDERATION. 3.3.6. FURTHER, THE ASSESSEE FILED THE LEDGER ACC OUNTS OF THE PARTIES FROM WHOM THE GREY CLOTH HAS BEEN PURCHASED ALONGWI TH COPY OF BANK STATEMENT WHEREIN EVEN THE NAME OF THE SUPPLIER HAS BEEN STATED IN RESPECT OF THE PAYMENTS MADE. THE OBSERVATION OF TH E A.O. THAT THE BANK STATEMENT OF M/S M M TRADERS SHOWS IMMEDIATE W ITHDRAWAL OF CASH AFTER DEPOSITING THE CHEQUE DOES NOT AUTOMATIC ALLY LEAD THE CONCLUSION THAT THE SAID PURCHASES ARE BOGUS. THE A SSESSEE HAS DISCHARGED ITS ONUS BY SUBMITTING THE REQUIRED DETA ILS TO THE A.O. THEREFORE, THE BURDEN IS SHIFTED UPON THE A.O. TO P ROVE THAT THE ITA NO.1366/AHD/2 011 AY 2007- 08 KOMAL AMIN EXPORTS PVT LTD - 5 - PURCHASE PRICE HAS BEEN RETURN BACK BY THE SAID PAR TY TO THE APPELLANT. THE OBSERVATION REGARDING THE IMMEDIATE CASH WITHDR AWAL IS ONLY REGARDING ONE OF THE SUPPLIER I.E. M/S M M TRADERS. IT IS A FACT ON RECORD THAT THERE ARE MANY OTHER SUPPLIERS FROM WHO M SUCH PURCHASES HAVE BEEN MADE. THE APPELLANT PRODUCED 3 GREY SUPPL IERS BEFORE THE A.O. FOR VERIFICATION BUT THE A.O. HAS NEITHER EXAM INED THEM NOR RECORDED THEIR STATEMENTS. THE APPELLANT ALSO SUPPL IED THE QUANTITATIVE TELLY OF THE IMPUGNED GREY CLOTH. 3.3.7 I HAVE CAREFULLY GONE THROUGH ALL THE DETAIL S AVAILABLE ON RECORD, COPY OF PURCHASE BILLS OF THE GREY CLOTH, COPIES OF THE CONTRA A/CS IN THE BOOKS OF THE SUPPLIERS AS WELL AS IN THE BOOKS OF T HE APPELLANT AND THE A/C PAYEE CHEQUE PAYMENT MADE BY THE ASSESSEE COMPA NY TO THE SAID SUPPLIERS. AS STATED IN EARLIER PARAS, THE APPELLAN T HAS SUPPLIED THE COMPLETE TELLY OF GREY CLOTH IN TERMS OF PURCHASES, SALES, CLOSING STOCK AS WELL AS ITS CONSUMPTION AS PACKING MATERIAL. THE CONSUMPTION OF THE GREY CLOTH AS PACKING MATERIAL IS ONLY OF RS.29 43275/- FOR AFFECTING THE EXPORT TURNOVER OF RS. 181.75 CR WHICH WORKS OU T TO MERELY 0.16% OF THE TOTAL SALE, APPEARS TO BE VERY VERY REASONAB LE AND ACCEPTABLE. IT IS AN UNDISPUTED FACT THAT APPELLANT HAS NOT CLAIME D ANY OTHER EXPENDITURE ON ACCOUNT OF PACKING MATERIAL. IT IS A LSO A WELL KNOWN FACT THAT THE EXPORT OF COTTON CAN NOT BE AFFECTED WITHOUT USING THE PACKING MATERIAL. I HAVE CAREFULLY EXAMINED ALL THE FACTS AN RECORD A ND I AM UNABLE TO ACCEPT THE VIEW POINTS OF THE A.O. THAT M ERELY BECAUSE THERE IS CASH WITHDRAWAL IN THE BANK ACCOUNT OF ONE SUPP LIER M/S M.M. TRADERS, AFTER THE ASSESSEE COMPANY MADE PAYMENTS TO IT BY A/C PAYEE CHEQUES, THE ENTIRE PURCHASE OF GREY CLOTH AP PEARS TO BE BOGUS. THE ASSESSEE DISCHARGED ITS FULL ONUS BY GIVING FUL L DETAILS OF GREY CLOTH AND ALSO PRODUCED THE SUPPLIERS OF GREY CLOTH BEFOR E A.O. WHO CONFIRMED THE GREY CLOTH SUPPLY TO THE APPELLANT. 3.3.8. IT IS ALSO AN UNDISPUTED FACT THAT THE A.O . HAS NOT BROUGHT ANY MATERIAL OR COGNIGENT EVIDENCE ON RECORD EXCEPT MEN TIONING THAT PURCHASE OF GREY CLOTH APPEARS TO BE BOGUS, ON THE GROUND THAT ONE OF THE SUPPLIER HAS WITHDRAWN THE CASH IMMEDIATELY AFT ER RECEIPT OF PAYMENTS BY A/C PAYEE CHEQUES. IN MY VIEW, THE ASSE SSEE HAS DISCHARGED ITS LIABILITY BY PRODUCING ALL THE EVIDE NCES TO SUPPORT ITS CLAIM OF GREY CLOTH PURCHASE. 3.3.9. THE RELIANCE PLACED BY THE LD. A.R ON THE F OLLOWING CASES ALSO SUPPORTS THE CONTENTION OF THE APPELLANT. (I) THE ITAT, AHMEDABAD IN THE CASE OF ITO VS SONAL CONSTRUCTION PVT LTD, ITA NO. 1838 & 1839/AHD/2009 DATED 21.01.2011 ON THE SIMILAR FACTS HELD AS UNDER:- ITA NO.1366/AHD/2 011 AY 2007- 08 KOMAL AMIN EXPORTS PVT LTD - 6 - ON CONSIDERATION OF THE ABOVE FACTS, WE ARE OF THE VIEW THAT NO INTERFERENCE IS CALLED FOR IN THE ORDER OF CIT(A), THE LD. CIT(A) FOUND THAT THE RATES OF CEMENT PURCHASED FROM M/S N IRAV TRADERS IS ALMOST SAME AS COMPARED TO THE PURCHASE RATE OF OTHER TRADERS. THE PURCHASED BILLS WERE PRODUCED AN D ALL THE PAYMENTS HAVE BEEN MADE THROUGH A/C PAYEE CHEQUES. NO EVIDENCE WAS BROUGHT ON RECORD THAT THE PURCHASE PR ICE PAID TO THE ABOVE PARTIES RETURNED BACK TO THE ASSESSEE. TH E LD. CIT(A) WAS THEREFORE JUSTIFIED IN DELETING HE ADDITION ON THE ABOVE ISSUE.' (II) ON THE IDENTICAL FACT, THE ITAT, AHMEDABA D IN THE CASE OF ITO VS SHRI PARAG SHAH IN ITA NO.1563/AHD/2002 DATE D 3.11.2006 HELD AS UNDER::- THE ASSESSEE WENT IN APPEAL BEFORE THE CIT(A) WHO DELETED THE ADDITION BY OBSERVING AS UNDER:- 'I HAVE CAREFULLY CONSIDERED THE SUBMISSION OF THE APPELLANT AND THE DOCUMENTS FURNISHED BY HIM. I HAV E ALSO GONE THROUGH THE VARIOUS JUDICIAL PRONOUNCEMENT REF ERRED TO ABOVE. THE MERE FACT THAT THE APPELLANT HAS NOT BEEN ABLE TO PRODUCE THE PARTIES FOR VERIFICATION CANNOT LEAD TO THE PRESUMPTION THAT THE PURCHASES WERE BOGUS. COPI ES OF THE BILLS FILED BY THE APPELLANT SHOWN THAT THE MAT ERIAL PURCHASED WAS DULLY SOLD AND IF THE PURCHASES ARE H ELD TO BE BOGUS THEN CORRESPONDING AMOUNT OF SALES WILL HA VE TO BE REDUCED FROM THE TOTAL SALES, SINCE THE PURCHASE S CANNOT SIMPLY VANISH IN THIN AIR. FURTHER , THE ASS ESSING OFFICER HAS NOT BROUGHT ANY MATERIAL ON RECORD TO P ROVE THAT THE MONEYS WITHDRAWN BY THE PARTIES FROM THEIR BANK ACCOUNT WITH SHRI LAXMI COPERATIVE BANK FLOWED BACK TO THE APPELLANT. IT IS ALSO IMPORTANT TO NOTE THAT TH E APPELLANT DID NOT INTRODUCE THIS PARTY FOR OPENING ACCOUNTS WITH THE BANK. APPARENTLY NO WORTHWHILE INQUIRY WAS CONDUCTED BY THE A.O TO ESTABLISH THE IDENTITY OF P ERSONS WHO WITHDREW THE CASH, WHICH COULD HAVE BEEN DONE B Y INQUIRES FROM THE BANK OFFICIALS/ THE RECORDS OF TH E BANK LIKE THE DISCHARGED BEARER CHEQUES BY WHICH MONEY C OULD HAVE BEEN WITHDRAWN. I AM OF THE CONSIDERED OPINION THAT THE A.O HAS NOT BEEN ABLE TO PROVE THE NON GENUINEN ESS OF PURCHASES AND HOLDING THEM TO BE BOGUS WAS WITHOUT ANY JUSTIFICATION AND WITHOUT BRINGING ANY COGENT MATER IAL ON RECORD . IN VIEW OF THIS THE ADDITION MADE ON THIS ACCOUNT, WHICH IS NOT SUPPORTED BY ANY CONCRETE EVIDENCES, I S HEREBY DELETED.' ITA NO.1366/AHD/2 011 AY 2007- 08 KOMAL AMIN EXPORTS PVT LTD - 7 - ' 4. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS, PERU SED THE MATERIAL AVAILABLE ON RECORD AND GONE THROUGH THE O RDERS OF THE AUTHORITIES BELOW. WE DO NOT FIND ANY INFI RMITY OR ILLEGALITY IN THE ORDER OF THE CIT(A), IN OUR OPINI ON, THE CIT(A) HAS RIGHTLY DELETED THE ADDITION. NO COGENT MATERIAL OR EVIDENCE HAS BEEN BROUGHT TO OUR NOTICE BY THE L D. DR WHICH MAY COMPEL US TO REVERSE THE FINDINGS GIVING BY THE CIT(A) AND THEREFORE, WE CONFIRMED THE ORDER OF THE CIT (A).' THE ABOVE ORDER OF THE HON'BLE ITAT, AHMEDABAD HAS BEEN FURTHER CONFIRMED BY HON'BLE HIGH COURT OF GUJARAT VIDE TAX APPEAL NO. 439 OF 2007 DATED 04/12/2007. 3.3.10 IN VIEW OF THE DETAILED DISCUSSION HELD ABOV E, THE ADDITION MADE BY A.O. OF RS. 5869299/- CANNOT BE SU STAINED. THE A.O. COULD NOT BRING ANY COGENT EVIDENCE ON REC ORD TO CONFIRM THE ADDITION OF GREY CLOTH. IN VIEW OF AIL ABOVE FACTS, THE ADDITION OF RS.58,69,299/- IS DELETED. THIS GROUND OF APPEAL IS ALLOWED. 9. THE DR MERELY RELIED ON THE ORDER OF THE ASSESSI NG OFFICER. HE COULD NOT POINT OUT ANY SPECIFIC MISTAKE IN THE ABOVE QUO TED ORDER OF THE COMMISSIONER OF INCOME-TAX (APPEALS). IN ABSENCE O F THE SAME, WE DO NOT FIND ANY GOOD AND JUSTIFIABLE REASON TO INTERFERE W ITH THE ORDER OF THE COMMISSIONER OF INCOME-TAX (APPEALS) WHICH IS CONFI RMED AND THIS GROUND OF APPEAL OF THE REVENUE IS DISMISSED. 10. IN THE RESULT, THE APPEAL OF THE REVENUE IS DIS MISSED. ORDER PRONOUNCED IN THE COURT ON TUESDAY, THE 30 TH OF SEPTEMBER, 2014 AT AHMEDABAD. SD/- SD/- ( MUKU L KR. SHRAWAT ) JUDICIAL MEMBER ( N.S. SAINI) ACCOUNTANT MEMBER AHMEDABAD; DATED 30/09/2014 *BIJU T. ITA NO.1366/AHD/2 011 AY 2007- 08 KOMAL AMIN EXPORTS PVT LTD - 8 - #. / ,01 2#1) / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. ! / CONCERNED CIT 4. ! ( ) / THE CIT(A)-VIII, AHMEDABAD 5. $%& '' , , )*++ / DR, ITAT, AHMEDABAD 6. &,- . / GUARD FILE. #. / BY ORDER, TRUE COPY 3/ 4 ( DY./ASSTT.REGISTRAR) , / ITAT, AHMEDABAD