COMMISSIONER OF INCOME TAX Vs. FORECH INDIA LTD.

JUDGEMENT

(1.) THE present appeal filed by the Revenue is in respect of the asst. yr. 2000 -01 and arises out of the Tribunal's order dt. 28th April, 2006 in ITA No. 4562/Del/2003.

(2.) THE Revenue was also in appeal before the Tribunal being aggrieved by the order passed by the CIT(A), who had deleted the addition of Rs. 1,15,44,926, which the AO had made on account of undisclosed stock found with the assessee during the course of a survey.

(3.) WE note that the CIT(A) observed that the crux of the matter pertains to the genuineness of purchase of Rs 1,46,00,078 made by the respondent -assessee prior to the date of survey but which were not entered in the purchase account in the financial books. The CIT(A) also noted that out of this, purchases to the extent of Rs. 1,24,00,747 were represented by six bills from M/s. Sanjay International and M/s. Maxwell. The case of the assessee was that even though the entries of such material had been made in the stock register and such stock was physically found in the factory premises of the assessee and formed part of the inventory taken in the survey, the purchase value of these items had not been debited in the purchase account as the purchase bills had not been handed over to the accountant for making entries thereof in the books of accounts. It was observed by the CIT(A) that, as against this, the AO felt that the aforesaid purchase bills had been arranged after the survey and were, therefore, not genuine.