TaxTMI 
TaxTMI 
2015 (3) TMI 1116
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....heard the parties and perused the record. The assessee is engaged in the business of civil construction under the name and style of M/s Kailash Construction Co. The total purchase expenditure claimed by the assessee during the year under consideration was Rs. 8,62,68,891/-. The AO noticed that the Sales Tax Department of Government of Maharashtra has listed out names of certain dealers, who were alleged to have been providing accommodation entries without doing actual business. The AO noticed that the assessee made purchases to the tune of Rs. 28.08 lakhs from some of the parties, whose names found place in the list provided by the Sales Tax Department. The AO also considered the statements taken by Sales Tax Department from some of the par....
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....atements given by the third parties before the Sales Tax Department, without conducting any other investigation. In the instant case also, the assessing officer has made the impugned addition on the basis of statements given by the parties before the Sales tax department. We notice that the ld.CIT(A) has properly analysed the facts prevailing in the instant case and for the sake of convenience, we extract the same below:- "5.3.11. I have also gone though the judicial pronouncements relied upon by the Ld AR and find that the facts of the above referred judicial pronouncements are similar to the present facts of the case and, therefore the ratio of judgments of the above referred two cases are fully applicable in the present case. Further, ....
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....t they were not genuine ent r i es though nei ther the As ses s ing Of f i cer nor the Commissioner (Appeals) opined anything in respect of those entries. Further, the purchase of the goods in the month of March 1985 did not make any di fference. The assessee might not have carried on any business activities prior to March 1985, but that did not mean that the assessee was not entitled to carry on the business activity in March 1985. They could not be compelled to carry on the business activity throughout the year. There were no good reasons to disbelieve the sales made by the assessee to 'S'. No sales were likely to be effected if there were no purchases. A sale could be made if the goods were available with the seller. From all these f....