2014 (11) TMI 1016

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....cts in upholding the addition of Rs. 4,98,80,892/- made by the AO u/s. 69C of the Act by treating the purchases as not genuine. 3. The assessee is a partnership firm carrying out the business of civil contracts, civil infrastructure, such as drainage and road repairs & maintenance mainly with Municipal Corporation of Greater Mumbai. The return for the year was filed on 28.9.2010 declaring total income of Rs. 2,99,79,680/-. The return was selected for scrutiny assessment and statutory notices were accordingly issued and served on the assessee. 3.1. During the course of the assessment proceedings, the Assessing Officer observed that the assessee has shown contract receipts at Rs. 32.05 crores against which total purchases and direct ....

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.... 27020680974V 4645143 10. Samarth Enterprises 27560694451V 2027551 11. Niddhish Impex Pvt. Ltd. 27600648257V 11235194   TOTAL   49880892/- 3.3. The assessee was asked to showcause why the transactions with these parties should not be considered as non genuine and the whole amount claimed as purchase from these parties should not be disallowed. On receiving no plausible reply to the showcause notice, the AO proceeded by treating the purchases of Rs. 4,98,80,892/- as bogus purchases and added the same to the total income of the assessee. 4. Aggrieved by this, the assessee carried the matter before the Ld. CIT(A). It was strongly contended by the assessee that the execution of the work is....

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....he assessee were also rejected by the Ld. CIT(A). The Ld. CIT(A) dismissed the appeal and confirmed the addition made by the AO by observing that the assessee has failed to corelate the material purchased with their use in the projects. 5. Aggrieved by this, the assessee is before us. 6. The Ld. Counsel for the assessee reiterated what has been submitted before the lower authorities. It is the say of the Ld. Counsel that all the purchase invoices were submitted before the AO and the AO has not pointed out any defect in the purchase invoice. The Ld. Counsel further stated that the purchases were duly paid by account payee cheque and the payment is reflected in their respective copies of ledger account. The payments are also reflecte....