ITAT allows appeals on purchase amounts from specific suppliers due to insufficient investigation.

The appeals challenging the addition of certain amounts related to purchases made from specific suppliers were allowed by the ITAT. The ITAT found that the lower authorities did not conduct sufficient investigation beyond initial suspicions and relied on incomplete and unreliable evidence. As a result, the ITAT reversed the decisions of the lower authorities and allowed all the appeals filed by the assessees.

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Issues Involved:
Challenging the order of the CIT (A)-1, Thane, the assessee filed appeals for two AY.s, while another individual filed appeals for three AY.s. The main issue involved in all the appeals was the confirmation of addition of certain amounts related to purchases made from specific suppliers.

Detailed Analysis:

Issue 1: ITA/4696/Mum/2016, AY.2009-10:
The effective ground of appeal was the confirmation of an addition of Rs. 6.35 lakhs related to purchases made from specific suppliers. The AO found that the suppliers were listed as suspicious dealers by the Sales Tax Department and were issuing bogus bills without delivering goods. The AO relied on affidavits/statements from the suppliers before the sales tax authorities. The FAA upheld the addition based on incomplete and unreliable books of accounts, invoking section 145(3) of the Act. During the hearing, the AR argued for the genuineness of purchases, while the DR highlighted the suppliers' admission of not having godowns. The ITAT found the AO lacked further investigation beyond initial suspicions and reversed the FAA's decision, citing established principles in tax jurisprudence.

Issue 2: ITA/4697/Mum/2016-AY.2010-11:
The appeal for this AY was similar to the previous one, with the only difference being the amount involved. Following the decision on the AY.2009-10 appeal, the ITAT allowed the appeal for this AY as well.

Issue 3: ITA/4693, 4694 & 4695/Mum/2016, AY.s. 2009-10; 2010-11 & 2011-12 (Manohar G. Kanda):
In this case, the appellant, husband of one of the earlier appellants, faced disallowances for different AY.s. The facts were identical to his wife's case, leading to the reversal of the FAA's decision in his favor.

In conclusion, all the appeals filed by the assessees were allowed based on the ITAT's analysis and reversal of the lower authorities' decisions.

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