2014 (8) TMI 1005

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....ji O R D E R PER N.K. BILLAIYA, AM: This appeal by the Revenue is preferred against the order of the Ld. CIT(A)-20, Mumbai dt. 26.7.2010 pertaining to A.Y.2006-07. 2. The grievances of the Revenue read as under:   "1. On the facts and in the circumstances of the case and in law, the Ld. CIT(A) erred in deleting the addition of Rs. 1,27,98,022/- relating to bogus purchases from ....

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....s reopened u/s. 147 of the Act. The reason for reassessing the income was provided to the assessee. The assessment was reopened on the basis of an intimation received from ITO-25(2)(1), Mumbai stating that Shri Hiten L. Raval, Proprietor of M/s. Zalak Impex indulged in issuing bogus bills, providing accommodation entries in the form of sales & purchases and during the course of the survey at the p....

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....lso. The AO completed the assessment proceedings by making additions on account of bogus purchases at Rs. 1,27,98,022/. 4. The assessee carried the matter before the Ld. CIT(A) and reiterated its claim that purchases were genuine, the payments were made by account payee cheque and the purchased diamonds were subsequently exported, the details of which were filed before the AO . The related invo....

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....ing channels. The Ld. CIT(A) further observed that in respect of exports to M/s. Andin International, the AO has assumed that the export was made from unaccounted purchases. The Ld. CIT(A) finally concluded by stating that there is no credible basis for the AO to hold the purchases made from M/s. Zalak Impex as bogus and deleted the addition of Rs. 1,27,98,022/-.   5. Aggrieved by this,....