2009 (1) TMI 855

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....he Assessing Officer on account of bogus purchases by the assessee. Briefly the undisputed facts are that the assessee is engaged in the business of trading in computer parts. The Department had received information that the assessee had made bogus purchases from certain parties. The information was received from the Assessing Officer of one Sh. T.R. Chadda at whose premises the department had carried out a raid. The assessee's case was picked up for scrutiny and during the assessment proceeding the assessee was asked to identify and produce confirmation of parties from whom purchases of Rs. 1 lakh and above had been made by the assessee during the relevant period. The Assessing Officer also deputed an inspector to conduct inquiries at t....

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.... judgment the Tribunal meticulously went through the evidence on record and returned the following findings of fact : (i)it is undisputed that the assessee was maintaining complete accounts including daily item-wise, stock register, purchase book, sales book, purchase bills and sales books; (ii)the accounts of the assessee have been duly audited under the Income-tax Act as well as the Companies Act; (iii)sales invoices of vendors were placed on record before the Assessing Officer. Insofar as purchases made by the assessee, were concerned they were entered in the item-wise stock register maintained by the assessee; (iv)all payments for purchases have been made by cheques; (v)a complete quantitative analysis between purchases m....