Tribunal held that there is serious suspicion about the conduct of the assessee in taking additional ground challenging the issue of approval u/s 153D for the first time before the Tribunal. The assessee is making an attempt is derail the issue on merits and to escape on technical ground. The affidavits filed by the AOs coupled with circumstantial evidences available in the assessment folders clearly establish the fact of obtaining necessary approval u/s 153D though copy of approval letter is not available in the assessment record. Accordingly the additional ground was rejected. Considering the statement of the Director and the assessee could not produce the delivery challans etc, the contention of the assessee that only profit can be assessed is not correct. 100% addition u/s 69C towards bogus purchases confirmed followed NK Proteins Ltd v DCIT (2017) 292 CTR 354 (SC) followed). (ITA No.3874/Mum/2015, dt. 10.04.2019)(AY. 2007-08/ 2011-12)
Pratibha Pipes & Structurals Ltd. v. CIT (Mum.)(Trib.), www.itatonline.org
S. 69C : Unexplained expenditure–Bogus purchases- Accommodation entries-Additional grounds-Approval is not available in the file-On the basis of affidavit filed by the AO , the Tribunal is presumed that the approval was obtained before issue of notice–100% addition is confirmed for alleged bogus purchases, considering the statements and material available on the record. [S. 153A, 153D]