Assessee’s claims can’t be rejected merely for Non-Acceptance of Genuineness of Transaction on ground of Non-Furnishing of Copy of Stock Register: ITAT [Read Order]
![Assessee’s claims can’t be rejected merely for Non-Acceptance of Genuineness of Transaction on ground of Non-Furnishing of Copy of Stock Register: ITAT [Read Order]](https://www.taxscan.in/wp-content/uploads/2022/01/ITAT-assessee-genuinity-transactions-Taxscan.jpg "Assessee’s claims can’t be rejected merely for Non-Acceptance of Genuineness of Transaction on ground of Non-Furnishing of Copy of Stock Register: ITAT [Read Order]")
The Bangalore Bench of Income Tax Appellate Tribunal (ITAT) has held that assesse’s claims cannot be rejected merely for Non-acceptance of genuineness of transaction on ground of non-furnishing of copy of stock register. The assessee, M/s. Neogenetics Foods Private Limited is engaged in the business of manufacturing and trading of animal feeds. Out of total sales of Rs. 253.02...
The Bangalore Bench of Income Tax Appellate Tribunal (ITAT) has held that assesse’s claims cannot be rejected merely for Non-acceptance of genuineness of transaction on ground of non-furnishing of copy of stock register.
The assessee, M/s. Neogenetics Foods Private Limited is engaged in the business of manufacturing and trading of animal feeds. Out of total sales of Rs. 253.02 crores, trading sales is Rs.160.23 crores (63.32% is trading sales).
The assessee during the relevant previous year entered into transactions with related parties which were in the nature of specific domestic transactions (STD) within the meaning of Section 92BA of the Act.
The assessee also submitted that payments have been made to all the 3 parties and that evidence would demonstrate that the trade creditors were genuine.
The coram of Vice President, N.V.Vasudevan and Accountant Member, B.R.Baskaran noted that the only reason given by the AO for not accepting the genuineness of the transaction with M/s. Manoj Traders and M/s. K. S. Enterprises is a failure of the assessee to furnish a copy of stock register. This cannot be a proper reason for rejecting the claim of the assessee when the confirmation letter, purchase register along with sample invoices were furnished by the assessee.
Taking into account these circumstances, the ITAT held that it would be just and appropriate to set aside the issue with regard to the addition of Rs.52,87,093/- to the AO for consideration afresh in the light of the evidence already filed by the assessee and also in the light of the further evidence that the assessee may file with regard to repayment of the trade credits. The AO is directed to consider the claim of the assessee in accordance with law, after affording assessee opportunity of being heard.
To Read the full text of the Order CLICK HERE
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