Appeal partially allowed, addition deleted for purchases, emphasizes verification, fair assessment

The Tribunal dismissed the appeal for A.Y. 2009-10 but partly allowed the appeal for A.Y. 2011-12. The decision directed the deletion of the addition made towards purchases from M/s. Raj Traders. The judgments highlighted the importance of verifying genuineness through proper enquiries rather than solely relying on external declarations, emphasizing fair assessment practices.

---

---

Issues:
1. Disallowance of purchases from M/s. Mehul Traders and M/s. Rahul Traders for A.Y. 2009-10.
2. Reopening of assessment and addition of purchases from M/s. Raj Traders for A.Y. 2011-12.

Analysis:
1. Disallowance of Purchases for A.Y. 2009-10:
- The Assessing Officer disallowed purchases from M/s. Mehul Traders and M/s. Rahul Traders due to unverifiable genuineness.
- Inspector's report stated inability to locate both traders' premises, leading to disallowance of purchases.
- Ld. CIT(A) upheld disallowance of depreciation but deleted the rest, considering capitalization in books.
- Tribunal affirmed Ld. CIT(A)'s decision, emphasizing unverified purchases' depreciation disallowance.

2. Reopening of Assessment for A.Y. 2011-12 and Addition of Purchases from M/s. Raj Traders:
- Assessing Officer treated purchases from M/s. Raj Traders as non-genuine based on Sales Tax Department's hawala entry provider declaration.
- Assessee provided purchase-related documents, but Ld. CIT(A) sustained addition relying on Sales Tax Department's website.
- Tribunal noted lack of independent enquiry by authorities, solely relying on website information.
- No evidence suggested purchases' non-genuineness, directing deletion of the addition from M/s. Raj Traders.

Conclusion:
The Tribunal dismissed the appeal for A.Y. 2009-10 but partly allowed the appeal for A.Y. 2011-12, directing the deletion of the addition made towards purchases from M/s. Raj Traders. The judgments emphasized the necessity of verifying genuineness through proper enquiries rather than solely relying on external declarations, ensuring fair assessment practices.

---