ACIT, Central Circle- 26 , New Delhi V. True Power International Ltd., Delhi

ITA 7860/DEL/2017

• Counselvise Citation: [2022] 105 COUNSELVISE.COM (IT) 6902 (ITAT-DELHI)
• Duration Of Justice: 4 year(s) 2 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-03-2022
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: G
• Assessment Year: 2014-2015
• Appeal Filed On: 28-12-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘G’, NEW DELHI Before Sh. Saktijit Dey, Judicial Member Dr. B. R. R. Kumar, Accountant Member (Through Video Conferencing) ITA No. 7860/Del/2017 : Asstt. Year : 2014-15 ACIT, Central Circle-26, New Delhi-110055 Vs True Power International Ltd., BG-135, Sanjay Gandhi Transport Nagar, New Delhi-110042 (APPELLANT) (RESPONDENT) PAN No. AAACA2294H Assessee by : None Revenue by : Sh. Umesh Takyar, Sr. DR Date of Hearing: 09.03.2022 Date of Pronouncement: 15.03.2022 ORDER Per Dr. B. R. R. Kumar, Accountant Member: The present appeal has been filed by the Revenue against the order of the ld. CIT(A)-29, New Delhi dated 17.10.2017. 2. Following grounds have been raised by the revenue: “1. The Ld C1T(A) has erred in deleting the addition of Rs.3,09,75,335/- without considering that the identity of the above parties to whom purchases were made has not been established. It is just same parties which have no physical existence at all as have been found by conducting all possible enquiries and giving all possible opportunities. 2. The Ld. CIT(A) has erred in deleting the addition of Rs.3,09,75,335/- without considering that the appellant had adopted a modus operandi that the goods were purchased from the grey market by paying ITA No. 7860/Del/2017 True Power International Ltd. 2 cash and the bills were obtained from the other parties, thereby, though the goods were purchased at lesser rate but shown the purchase price at higher rate. Thus an amount of Rs.31,25,66,447/- shown as purchases from above parties are considered as bogus purchase.” 3. During the year under consideration, the assessee company was mainly engaged in the business of trading of electrical items such as UPS, Inverters, CVT Batteries etc. During the year under consideration, the assessee company has derived income from business or profession and other resources. 4. The assessee had trade payables to about 9 parties of value Rs.31.25 crores. The AO held that during verification notices were issued to all the 10 parties and no replies have been received from about 8 parties. The assessee has explained the transactions with various parties along with details of the payments made in the subsequent years. However, the AO held that the transactions remained unverified and notices remained unserved and the outstanding amounts in the name of these parties have been brought to tax. 5. The ld. CIT(A) deleted the addition on the grounds that these parties could not comply due to change of the address. The new addresses were furnished before the AO during the assessment proceedings and correct addresses were mentioned even before the ld. CIT(A). All the details of purchases made from these parties were filed and examined by the ld. CIT(A). The payments were verifiable from the bank statements. The ld. CIT(A) has examined the details which has been mentioned at page nos. 7 to 11 of his order. Since, the ld. CIT(A) has given ITA No. 7860/Del/2017 True Power International Ltd. 3 the remission after going through the entire factual matrix with regard to purchase of the goods, receipt of the goods, confirmations, bank payments, in the absence of any contrary material brought before us to dispute the decision of the ld. CIT(A), we hereby decline to interfere with the reasoned order of the ld. CIT(A). 6. In the result, the appeal of the Revenue is dismissed. Order Pronounced in the Open Court on 15/03/2022. Sd/- Sd/- (Saktijit Dey) (Dr. B. R. R. Kumar) Judicial Member Accountant Member Dated: 15/03/2022 *Subodh Kumar, Sr. PS* Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR