Law:

Section:

ORDER 1. This appeal by the Revenue under Section 260A of the Income-tax Act, 1961 (the Act) challenges the order dated 30-04-2010 of the Income-tax Appellate Tribunal (the Tribunal) relating to Assessment Year 2001-02. 2. The following question of law has been formulated for consideration of this Court. "Whether on the facts and in the circumstances of the case and in law the Tribunal was right in deleting the addition made by the Assessing Officer of Rs.1,33,41,917/- towards bogus purchases even though the suppliers were non-existent and one of the parties had categorically denied having any business dealings with the Assessee Company?" 3. The respondent-assessee had filed its return of income for the Assessment Year 2001-02 declaring a total income of Rs.42.08 lacs. The Assessing Officer interalia disallowed an expenditure of Rs.1.33 crores on account of non-genuine purchases from 7 parties alongwith other disallowances. The Assessing Officer by order dated 25-03-2004 assessed the respondent-assessee to an income of Rs.1.87 crores. 4. Being aggrieved an appeal was filed by the respondent-assessee with the Commissioner of Income-tax (Appeals) ('CIT(A)'). By an order dated 19-08-2004, the CIT(A) upheld the order of the Assessing Officer interalia to the extent Rs.1.33 crores disallowed as bogus purchases. 5. Being aggrieved by the order dated 19-08-2004 of the CIT(A), the respondent-assessee preferred an appeal to the Tribunal. The Tribunal in the impugned order dated 30-04-2010 while allowing the appeal records that the respondent-assessee had filed letters of confirmation of suppliers, copies of bank statement showing entries of payment through Account Payee cheques to the suppliers, copies of invoices for purchases and stock statement i.e. stock reconciliation statement. This reconciliation statement gave complete details with regard to opening stock, purchases, sales and closing stock and no fault with regard to it was found. Besides, substantial amount of sales made by the respondent-assessee was to Government Department i.e. Defence Research and Development Laboratory, Hyderabad and such sales could not be bogus. Besides the Books of Account of the…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492