S. 69C : Unexplained expenditure-Civil Contractor engaged in civil construction contracts- Purchases from suspicious dealers-Official websites of the Sales Tax Department, Government of Maharashtra -Bogus purchases-Books of account not rejected-Opportunity for cross examination was not provided-Purchases through banking channels- Deletion of addition is upheld. [S. 133(6), 143(3)]
The assessee is in the business of Civil Construction. Relying upon certain statements of the proprietors of the 21 firms referred to in the notice, and since none attended or made any submissions on behalf of the assessee after receiving a show cause notice, the Assessing Officer presumed that the assessee had nothing to say and that the said purchases should be treated as his income. He passed the assessment order treating the entire purchase amount of Rs.4,99,27,664/- as unexplained expenditure under the provisions of Section 69C of the Act. On appeal the CIT(A) deleted the addition on the ground that the books of account of the appellant was not rejected and the opportunity for cross-examination of the parties whose statement was relied on was not provided. Order of CIT(A) was affirmed by the Tribunal. On appeal by the Revenue dismissing the appeal the Court held that there are concurrent findings arrived at by the Commissioner of Income Tax (Appeals) and the Income Tax Appellate Tribunal, on the fact that the Respondent had satisfactorily discharged the initial burden of proving the genuineness of the transactions. Relied on CIT v. CIT v. Nikunj Eximp Enterprises (P.) Ltd. (2013) 216 Taxman 171 (Mag.) (2015) 372 ITR 619(Bom.)(HC). (ITA No.795 of 2018 dt. 9-1-2023)(AY. 2010-11)
PCIT v. Sanjay Dhokad (Mr) (Bom.)( HC)
[Coram : Hon’ble Shri Justice Dhiraj Singh Thakur and Hon’ble Shri Justice Valmiki Sa Menezes]