Assessee is private limited co, engaged in the business of manufacturing of steel plates and other allied products . Search action U\/Sec. 132 was conducted in the year 2021-22 . During the search in respect of certain purchase bills the assessee was not able to provide the details of Toll receipts, and LR receipts along with the E way Bills . The investigating team has drawn the inference that all these bills are non genuine . On the basis of these defects, during the course of reassessment proceedings initiated U\/Sec.148A, AO has issued show cause as to why the purchases should not be considered as non genuine . Assessee has given the reply as under:<\/p>\n
a. In respect of inference that assessee has not produced Toll receipts, assessee has obtained the same from the transporter, where toll was paid , given the evidence that the vechicle was used the route which do not require toll payment.<\/p>\n
b. provided the\u00a0 confirmation as well as account extract of the parties giving their valid GST Numbers and PAN<\/p>\n
c. Lorry receipts as well as Good received Receipts<\/p>\n
d. Genuine E Way bills<\/p>\n
e. Electricity consumption<\/p>\n
f. quantitative details of consumption of material and inventory<\/p>\n
Inspite of this the AO proposed to make an addition of 100% of the purchases from such parties , even though the discripancies found were for few bills . Is the action of the AO is justified?<\/p>\n","protected":false},"comment_status":"open","ping_status":"closed","template":"","qa_expert":[33],"qa_category":[23],"qa_tag":[272,693,218],"class_list":["post-29805","qa","type-qa","status-publish","hentry","qa_expert-advocate-shashi-ashok-bekal","qa_category-income-tax","qa_tag-purchases","qa_tag-search-action","qa_tag-unexplained-cash-credit"],"acf":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/qa\/29805","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/qa"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/qa"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=29805"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=29805"}],"wp:term":[{"taxonomy":"qa_expert","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/qa_expert?post=29805"},{"taxonomy":"qa_category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/qa_category?post=29805"},{"taxonomy":"qa_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/qa_tag?post=29805"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}