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

ITA 2214/AHD/2011

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 85818 (ITAT-AHMEDABAD)
• Duration Of Justice: 3 year(s) 6 month(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 13-03-2015
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: C
• Next Hearing Date: 03-03-2015
• Assessment Year: 2008-2009
• Appeal Filed On: 02-09-2011
• 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 AHMEDABAD C BENCH AHMEDABAD , LH LHLH LH BEFORE SHRI SHAILENDRA KUMAR YADAV, JUDICIAL MEMBER, AND SHRI N. S. SAINI, ACCOUNTANT MEMBER. ITA. NO. 2214/AHD/2011 (ASSESSMENT YEAR:2008-09) THE ITO, WARD (2), AHMEDABAD APPELLANT VS. KOMAL AMIN EXPORTS. PVT. LTD. 309-310, SHANTI ARCADE, NR. SAHAJANAND COMPLEX, 132 FT. RING ROAD, NARANPURA, AHMEDABAD-380013 RESPONDENT PAN: AACCK5343B /BY APPELLANT : SHRI M. K. SINGH, SR. D.R. /BY RESPONDENT : SHRI S. N. DIVETIA, A.R. !' /DATE OF HEARING : 03.03.2015 #$% !' /DATE OF PRONOUNCEMENT : 13.03.2015 ORDER PER SHAILENDRA KUMAR YADAV, J.M: THIS APPEAL HAS BEEN FILED BY REVENUE AGAINST THE O RDER OF COMMISSIONER OF INCOME TAX (APPEALS)-VIII, AHMEDABA D, DATED 04.07.2011 FOR A.Y. 2008-09 ON THE FOLLOWING GROUND S. ITA NO. 2214/AHD/11 A.Y. 2008-09 [ITO VS. M/S.KOMAL AMIN EXPORTS PVT. LTD.] PAGE 2 1. THE LD.CIT(A) HAS ERRED IN LAW AND ON FACTS IN DELETING ADDITION OF RS.95,01,945/- ON ACCOUNT OF EXPENSES F OR PURCHASE OF GREY CLOTH WITHOUT APPRECIATING THE FAC T THAT THE ASSESSEE HAD FAILED TO SUBSTANTIATE ITS CL AIM WITH NECESSARY SUPPORTING EVIDENCES DURING THE ASSESSMENT PROCEEDINGS. 2. ASSESSEE IS CLOSELY HELD COMPANY AND ENGAGED IN THE BUSINESS OF TRADERS AND MERCHANT EXPORTERS OF COTTO N AND OTHER ITEMS. THE ONLY ISSUE BEFORE US IS WITH REGARDS TO ADDITION OF RS.95,01,945/- ON ACCOUNT OF EXPENSES FOR PURCHASE OF GREY CLOTHES. ASSESSING OFFICER HAS MADE IMPUGNED ADDIT ION BY OBSERVING DETAILED REASONING, REPRODUCED IN PARA 4. 1 OF CIT(A)S ORDER. 2.1 MATTER WAS CARRIED BEFORE THE FIRST APPELLATE A UTHORITY, WHEREIN VARIOUS CONTENTIONS WERE RAISED ON BEHALF O F ASSESSEE AND HAVING CONSIDERED THE SAME CIT(A) HAS GRANTED R ELIEF TO THE ASSESSEE BY FOLLOWING CIT(A)S ORDER FOR A.Y. 2007- 08. THUS DELETED THE ADDITION. 2.2 BEFORE US, LEARNED AUTHORIZED REPRESENTATIVE PO INTED OUT THAT TRIBUNAL IN A.Y. 2007-08 HAS DECIDED THE SIMIL AR ISSUE IN FAVOUR OF ASSESSEE. WE FIND THAT TRIBUNAL IN A.Y. 2007-08 HAS UPHELD THE ORDER OF CIT(A) WHO HAS GRANTED RELIEF T O ASSESSEE BY OBSERVING AS UNDER: 7. WE FIND THAT THE ASSESSING OFFICER MADE AN ADDI TION OF RS.58,69,299/- ON ACCOUNT OF BOGUS PURCHASES OF GRE Y CLOTHES AS HE FOUND THAT THE BILLS OF M/S M M TRADE RS, K N TRADERS, NEW KAMAL TEXTILE, ARBUDA TRADERS, NAVJIVA N TEXTILE ETC. HAD INCOMPLETE ADDRESS, WERE PREPARED BY ONE ITA NO. 2214/AHD/11 A.Y. 2008-09 [ITO VS. M/S.KOMAL AMIN EXPORTS PVT. LTD.] PAGE 3 PERSON AND ALSO SIGNED BY THE SAME PERSON IN ALL THE CASES AND THAT THE CREDITS IN THE BANK STATEMENT OF THE S UPPLIERS WAS OF THE CHEQUES PAID BY THE ASSESSEE WHICH WERE IMMEDIATELY WITHDRAWN BY THEM ON THE VERY SAME DAY. ON THESE FACTS, THE ASSESSING OFFICER HELD THAT THE EN TIRE PURCHASES 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 AND OTHER MATERIAL AVAILABLE ON RECORD. DURING THE COURSE OF ASSESSMENT PROCEEDINGS, THE A. O. OBSERVED THAT THE ASSESSEE HAS SHOWN GREY CLOTH PURCHASE OF RS.58,69,299. THERE IS NO OPENING AND CLOSING STOCK OF GREY CLOTH. ON VERIFICATION OF THE BILLS, THE A.O. OBSERVED THAT MOST OF THE BILLS HAVING INCOMPLETE ADDRESS AND HAVING SIGNATURE OF ONE PERSON. THE A.O. ASKED THE ASSESSEE TO PRODUCE ALL THE GREY SUPPLIERS ALONG WITH THEIR BANK ACCOUNTS, CONT RA ACCOUNT, COPY OF RETURN OF INCOME ETC. IN RESPONSE TO THE SAME, THE ASSESSEE PRODUCED 3 PARTIES IN THE OF FICE OF THE A.O. THE A.O. WAS NOT SATISFIED WITH THE EXPLANATION OFFERED BY THE SUPPLIERS AND THEREFORE, HE TREATED THE PURCHASE OF GREY CLOTH AS BOGUS AND ADD ED 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 SUBMIT TED THAT THE 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 AUDIT ED BY THE AUDITORS UNDER THE COMPANY ACT AND BY THE TA X AUDITORS UNDER THE I.T. ACT. THE APPELLANT HAS FILE D AUDITED ANNUAL ACCOUNTS WITH THE TAX AUDIT REPORT. IT ALSO FILED DETAIL OF INVENTORIES AND ALSO PROVIDED ALL THE REQUIRED PAPERS, DOCUMENTS, SUPPORTING EVIDENCES AN D CONFIRMATION ETC TO A.O. DURING ASSESSMENT PROCEEDINGS. ITA NO. 2214/AHD/11 A.Y. 2008-09 [ITO VS. M/S.KOMAL AMIN EXPORTS PVT. LTD.] PAGE 4 3.3.2 THE LD. A.R. ON BEHALF OF THE APPELLANT FURTHER SUBMITTED THAT THE APPELLANT HAVING EXPORT OF LARGE QUANTITY OF COTTON, REQUIRES GREY CLOTH FOR P ACKING OF THE EXPORT MATERIAL AS PER THE SPECIFIC REQUIREM ENT OF THE FOREIGN BUYERS AS WELL AS GENERAL TERMS AND CONDITIONS OF EXPORT MARKETING. HE FURTHER SUBMITTE D THAT OCCASIONALLY THE APPELLANT SALES GREY CLOTH ( PACKING MATERIAL) IF NOT IMMEDIATELY REQUIRED FOR PACKING OF EXPORT GOODS. THE APPELLANT HAS PURCHASE D GREY CLOTH OF RS.5869299/- DURING THE YEAR UNDER CONSIDERATION. THERE WAS NO OPENING STOCK OF IMPUGNED GREY CLOTH ( PACKING MATERIAL) ON THE FIRS T 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 SALES OF GREY CLOTH OF RS. 12,50,310 DURING THE YEAR UNDER CONSIDERATION WHICH IS SHOWN IN SCHEDULE-M OF AUDITED ACCOUNTS. THE ABOVE INFORMATION WAS SUBMITTED TO THE A.O. ALSO DURING ASSESSMENT PROCEEDINGS. HE THEREFORE, STRONG LY OBJECTED THAT THE SALE AND CLOSING STOCK OF GREY CL OTH OF RS. 2926024/- (1250310 + 1675714) ALREADY SHOWN IN THE CREDIT/INCOME SIDE OF THE AUDITED P & L A/CS FO R THE 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 APPELLANT HAS CONSUMED NET GREY CLOTH OF RS. 29,43,275 AS PACKING MATERIAL FOR AFFECTING EXPORT SALE OF RS.181.57 CRS. THE GREY CLOTH CONSUMED IN F.Y. 2006-07 IS MERELY 0.16% OF TOTAL EXPORT SALES WHICH IS VERY REASONABLE AND JUSTIFIABLE AS COMPARED TO THE TURNOVER MADE DURING THE YEAR UNDER CONSIDERATION. THE LD. A.R. ALSO SUBMITTED THAT THE APPELLANT PROVIDED ALL THE BILLS OF GREY CLOTH PURCHASED DURI NG THE YEAR UNDER CONSIDERATION DURING ASSESSMENT PROCEEDINGS. THE A.O. ASKED TO PRODUCE GREY CLOTH PARTIES BEFORE HIM AND IN COMPLIANCE TO THE SAME, T HE APPELLANT HAS PRODUCED 3 PARTIES I.E PROPRIETOR OF SAMBHAV TEXTILES, M.M. TRADERS AND NAVJIVAN TEXTILE S BEFORE HIM AND THEY ALL HAVE CONFIRMED THAT THEY HA VE SOLD THE IMPUGNED GREY CLOTH TO THE APPELLANT ITA NO. 2214/AHD/11 A.Y. 2008-09 [ITO VS. M/S.KOMAL AMIN EXPORTS PVT. LTD.] PAGE 5 COMPANY, I.E. M/S KOMAL AMIN EXPORTS PVT LTD. THE APPELLANT HAS ALSO SUBMITTED THE CONFIRMATION, CONT RA ACCOUNTS 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 MADE BY A/C PAYEE CHEQUES ONLY. THE LD. A.R FURTHER SUBMITT ED THAT THE A.O. HAS NEITHER EXAMINED THE GREY SUPPLIE RS NOR RECORDED ANY STATEMENTS OF THOSE. HE HAS ARBITRARILY MADE ADDITION OF GREY CLOTH PURCHASES (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 O F GREY CLOTH OF RS. 16,75,714/- AS ON 31.3.2007 . EVE N THE QUANTITATIVE DETAILS GIVEN IN THE NOTES ON ACCO UNTS ALSO SHOWS AT NO. 15(A) THAT THERE WAS CLOSING STOC K OF GREY CLOTH (PACKING MATERIAL) OF RS.16,75,714/-. ON VERIFICATION OF SCHEDULE-M AS DISCUSSED SUPRA, IT I S OBSERVED THAT THE APPELLANT HAS SOLD THE GREY CLOTH OF RS. 12,50,310/- DURING THE YEAR UNDER CONSIDERATION AND WHICH IS CLEARLY REFLECTED IN SCHEDULE-M OF AUD ITED ANNUAL ACCOUNTS. THE GREY CLOTH SALE OF RS. 1250310 /- IS FURTHER REFLECTED IN QUANTITATIVE DETAILS AT SL NO. 15(B) IN NOTES ON ACCOUNTS. AS SUCH THE ADDITION OF RS. 2926074/-( 1675714 =1250310) - WHICH IS ALREADY DECLARED IN THE INCOME SIDE OF THE AUDITED P & L A/ C, FOR THE RELEVANT F.Y 2006-07, THE ADDITION MADE BY A.O. FALLS IN THE CATEGORY OF DOUBLE 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 CONSUME D BY THE APPELLANT FOR AFFECTING THE EXPORT SALES OF 181.75 CRS. THE SUBMISSION OF THE APPELLANT ON THIS GROUND APPEARS TOBE CONVINCING AS THE GREY CLOTH CONSUMED IN F.Y. 2006-07 IS MERELY 0.16% OF THE TOTAL SALES WHI CH APPEARS TO BE EXTREMELY REASONABLE AND JUSTIFIABLE IN TERMS AND QUANTUM 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 ITA NO. 2214/AHD/11 A.Y. 2008-09 [ITO VS. M/S.KOMAL AMIN EXPORTS PVT. LTD.] PAGE 6 PURCHASED ALONGWITH 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 WITHDRAWAL OF CASH AFTER DEPOSITING THE CHEQUE DOES NOT AUTOMATICALLY LEAD THE CONCLUSI ON THAT THE SAID PURCHASES ARE BOGUS. THE ASSESSEE HAS DISCHARGED ITS ONUS BY SUBMITTING THE REQUIRED DETA ILS TO THE A.O. THEREFORE, THE BURDEN IS SHIFTED UPON T HE A.O. TO PROVE THAT THE PURCHASE PRICE HAS BEEN RETU RN BACK BY THE SAID PARTY TO THE APPELLANT. THE OBSERVATION REGARDING THE IMMEDIATE CASH WITHDRAWAL 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 WHOM SUCH PURCHASES HAVE BEEN MADE. THE APPELLANT PRODUCED 3 GREY SUPPLIERS BEFOR E THE A.O. FOR VERIFICATION BUT THE A.O. HAS NEITHER EXAMINED THEM NOR RECORDED THEIR STATEMENTS. THE APPELLANT ALSO SUPPLIED THE QUANTITATIVE TELLY OF T HE 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 TH E SUPPLIERS AS WELL AS IN THE BOOKS OF THE APPELLANT AND THE A/C PAYEE CHEQUE PAYMENT MADE BY THE ASSESSEE COMPANY TO THE SAID SUPPLIERS. AS STATED IN EARLIER PARAS, THE APPELLANT HAS SUPPLIED THE COMPLETE TELL Y OF GREY CLOTH IN TERMS OF PURCHASES, SALES, CLOSING ST OCK AS WELL AS ITS CONSUMPTION AS PACKING MATERIAL. THE CONSUMPTION OF THE GREY CLOTH AS PACKING MATERIAL I S ONLY OF RS.2943275/- FOR AFFECTING THE EXPORT TURNO VER OF RS. 181.75 CR WHICH WORKS OUT TO MERELY 0.16% OF THE TOTAL SALE, APPEARS TO BE VERY VERY REASONABLE AND ACCEPTABLE. IT IS AN UNDISPUTED FACT THAT APPELLANT HAS NOT CLAIMED ANY OTHER EXPENDITURE ON ACCOUNT OF PACKING MATERIAL. IT IS ALSO 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 AND I AM UNABLE TO ACCEPT THE VIEW POINTS OF THE A .O. ITA NO. 2214/AHD/11 A.Y. 2008-09 [ITO VS. M/S.KOMAL AMIN EXPORTS PVT. LTD.] PAGE 7 THAT MERELY BECAUSE THERE IS CASH WITHDRAWAL IN THE BANK ACCOUNT OF ONE SUPPLIER M/S M.M. TRADERS, AFT ER THE ASSESSEE COMPANY MADE PAYMENTS TO IT BY A/C PAYEE CHEQUES, THE ENTIRE PURCHASE OF GREY CLOTH APPEARS TO BE BOGUS. THE ASSESSEE DISCHARGED ITS FU LL ONUS BY GIVING FULL DETAILS OF GREY CLOTH AND ALSO PRODUCED THE SUPPLIERS OF GREY CLOTH BEFORE A.O. WH O 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 MENTIONING THAT PURCHASE OF GREY CLOT H APPEARS TO BE BOGUS, ON THE GROUND THAT ONE OF THE SUPPLIER HAS WITHDRAWN THE CASH IMMEDIATELY AFTER RECEIPT OF PAYMENTS BY A/C PAYEE CHEQUES. IN MY VIE W, THE ASSESSEE HAS DISCHARGED ITS LIABILITY BY PRODUC ING ALL THE EVIDENCES TO SUPPORT ITS CLAIM OF GREY CLOT H PURCHASE. 3.3.9. THE RELIANCE PLACED BY THE LD. A.R ON THE FOLLOWING 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:- ON CONSIDERATION OF THE ABOVE FACTS, WE ARE OF THE VIEW THAT NO INTERFERENCE IS CALLED FOR IN THE ORDE R OF CIT(A), THE LD. CIT(A) FOUND THAT THE RATES OF CEMENT PURCHASED FROM M/S NIRAV TRADERS IS ALMOST SAME AS COMPARED TO THE PURCHASE RATE OF OTHER TRADERS. THE PURCHASED BILLS WERE PRODUCED AND ALL THE PAYMENTS HAVE BEEN MADE THROUGH A/C PAYEE CHEQUES. NO EVIDENCE WAS BROUGHT ON RECORD THAT THE PURCHASE PRICE PAID TO THE ABOVE PARTIES RETURNED BACK TO THE ASSESSEE. THE 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 ITA NO. 2214/AHD/11 A.Y. 2008-09 [ITO VS. M/S.KOMAL AMIN EXPORTS PVT. LTD.] PAGE 8 NO.1563/AHD/2002 DATED 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 HAVE ALSO GONE THROUGH THE VARIOUS JUDICIAL PRONOUNCEMENT REFERRED 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. COPIES OF THE BILLS FILED BY THE APPELLANT SHOWN THAT THE MATERIAL PURCHASED WAS DULLY SOLD AND IF THE PURCHASES ARE HELD TO BE BOGUS THEN CORRESPONDING AMOUNT OF SALES WILL HAVE TO BE REDUCED FROM THE TOTAL SALES, SINCE THE PURCHASES CANNOT SIMPLY VANISH IN THIN AIR. FURTHER , THE ASSESSING OFFICER HAS NOT BROUGHT ANY MATERIAL ON RECORD TO PROVE 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 THE 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 PERSONS WHO WITHDREW THE CASH, WHICH COULD HAVE BEEN DONE BY INQUIRES FROM THE BANK OFFICIALS/ THE RECORDS OF THE BANK LIKE THE DISCHARGED BEARER CHEQUES BY WHICH MONEY COULD HAVE BEEN WITHDRAWN. I AM OF THE CONSIDERED OPINION THAT THE A.O HAS NOT BEEN ABLE TO PROVE THE NON GENUINENESS OF PURCHASES AND HOLDING THEM TO BE BOGUS WAS WITHOUT ANY JUSTIFICATION AND WITHOUT BRINGING ANY COGENT MATERIAL ON RECORD . IN VIEW OF THIS THE ADDITION MADE ON THIS ACCOUNT, WHICH IS ITA NO. 2214/AHD/11 A.Y. 2008-09 [ITO VS. M/S.KOMAL AMIN EXPORTS PVT. LTD.] PAGE 9 NOT SUPPORTED BY ANY CONCRETE EVIDENCES, IS HEREBY DELETED.' ' 4. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS, PERUSED THE MATERIAL AVAILABLE ON RECORD AND GONE THROUGH THE ORDERS OF THE AUTHORITIES BELOW. WE DO NOT FIND ANY INFIRMITY OR ILLEGALITY IN THE ORDER OF THE CIT(A), IN OUR OPINION, THE CIT(A) HAS RIGHTLY DELETED THE ADDITION. NO COGENT MATERIAL OR EVIDENCE HAS BEEN BROUGHT TO OUR NOTICE BY THE LD. 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 B E SUSTAINED. THE A.O. COULD NOT BRING ANY COGENT EVIDENCE ON RECORD 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 MISTAK E IN THE ABOVE QUOTED ORDER OF THE COMMISSIONER OF INCOME-TA X (APPEALS). IN ABSENCE OF THE SAME, WE DO NOT FIND ANY GOOD AND JUSTIFIABLE REASON TO INTERFERE WITH THE ORDER OF THE COMMISSIONER OF INCOME-TAX (APPEALS) WHICH IS CONFI RMED AND THIS GROUND OF APPEAL OF THE REVENUE IS DISMISS ED. 10. IN THE RESULT, THE APPEAL OF THE REVENUE IS DIS MISSED. NOTHING CONTRARY WAS BROUGHT TO OUR KNOWLEDGE ON BE HALF OF REVENUE. FACTS BEING SIMILAR SO FOLLOWING SAME REA SONING, WE ITA NO. 2214/AHD/11 A.Y. 2008-09 [ITO VS. M/S.KOMAL AMIN EXPORTS PVT. LTD.] PAGE 10 ARE NOT INCLINED TO INTERFERE IN THE FINDING OF CIT (A) WHO HAS RIGHTLY GRANTED RELIEF TO THE ASSESSEE WHEREBY DELE TING ADDITION OF RS.95,01,945/- ON ACCOUNT OF EXPENSES FOR PURCHA SE OF GREY CLOTHES. SAME IS UPHELD. 3. IN THE RESULT, APPEAL FILED BY REVENUE IS DISMIS SED. PRONOUNCED IN THE OPEN COURT ON THIS THE 13 TH DAY OF MARCH, 2015. SD/- SD/- (N. S. SAINI) (SHAILENDR A KUMAR YADAV) ACCOUNTANT MEMBER JUDICIAL MEMBE R AHMEDABAD: DATED 13/03/2015 TRUE COPY S.K.SINHA & & & & ' ' ' ' ('% ('% ('% ('% / COPY OF ORDER FORWARDED TO:- 1. +, / REVENUE 2. / ASSESSEE 3. // 0 / CONCERNED CIT 4. 0- / CIT (A) 5. '45 , , / DR, ITAT, AHMEDABAD 6. 589 :; / GUARD FILE. BY ORDER / & ,