2016 (12) TMI 51

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....4,28,625/-. 2. Facts qua the dispute are that the assessee was engaged in the business of Steel Re-rolling Mills and filed its return of income declaring total taxable income of Rs. 17,73,556/-. The same was selected for scrutiny assessment u/s 143(3) of the Income Tax Act, 1961 [the Act] wherein total income was determined at Rs. 50,59,681/- after making certain disallowances and adjustments vide Assessing Officer [AO] order dated 27/02/2014. The assessee suffered addition of Rs. 28,57,500/- against purchase of one wire drawing Machinery along with all its accessories including Electric Motor & Switches from 'M/s Jai Krishna Enterprises' whose name appeared in the list of Hawala entry providers published in the official website of Mahar....

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....he assessee and assessee did not seek cross examination of the supplier before Sales Tax Authorities. Finally, CIT(A) sustained the impugned additions albeit observing that Section 69 do not apply to such case but nevertheless, the purchase, being bogus, rightly been added to the income of the assessee. Aggrieved, the assessee is in appeal before us. 3. The Ld. Counsel for assessee [AR] has contended that Section 69 has no applicability as Machinery has duly been recorded in the books of accounts and nowhere debited to Profit & Loss Account. CIT(A) also observed the same but still affirmed the additions. The initial onus to prove the purchase of Machinery was on the assessee which he has duly fulfilled by supplying requisite documents. T....