2015 (10) TMI 1014

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....e in coming to the conclusion that the purchases made from the four parties were genuine, when both the AO and the CIT(A) had come to the conclusion otherwise?" 3. The Respondent-Assesee is engaged in the business of manufacturing/ trading and export of Stainless Steel cutlery. In the original Assessment Order dated 27th March, 2006 passed under Section 143(3) of the Act, the Assessing Office disallowed the purchase to the tune of Rs. 82.84 lakhs on the ground that the Respondent-Assessee had failed to produce the parties and the Inspector deputed could not locate the parties. On further appeal, the CIT(A) while upholding the order of the Assessing Officer did not accept the additional evidence sought to be filed by the Respondent-Assessee....

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....nt-Assesssee was not examined by the Assessing Officer. This evidence was not examined by the Assessing Officer on the ground that the Respondent-Assessee did not comply with his notices. This finding of not complying with the notices, the impugned order holds was found to be incorrect by the CIT(A). The Revenue in its appeal before the Tribunal has not challenged the above finding of the CIT(A). Therefore, there was no reason for the Assessing Officer not to have examined the evidence led by the Respondent-Assesssee. Further, on consideration of the record, the Tribunal held that the payments had been made to all the four parties through banking channels i.e. account payee cheque. The copy of the bank statement showing a clearance of the a....

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....d upon the assessee was discharged. It was upon the Assessing Officer to prove that these documents are not genuine. Once these documents have not been adversely commented, it cannot be held that the entire purchases with these parties are bogus....." In the above view, the Tribunal allowed the Respondent-Assessee's appeal while dismissing the Revenue's appeal. It held that the entire purchases aggregating to Rs. 82.84 lakhs from the four parties were genuine and allowed as expenditure. 8. We find that Tribunal in the impugned order has considered various evidences in the form of Sales Tax Registration Certificate and the PAN number of the parties, copies of the purchase invoices, quantitative utilization of its purchases correspo....