2016 (12) TMI 51

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....aptioned appeal by the assessee for Assessment Year [AY] 2011-12 assails the order of the Commissioner of Income Tax (Appeals)-14 [CIT(A)], Mumbai dated 26/11/2014 qua confirmation of addition of bogus purchases of machinery for Rs. 28,57,500/- and consequent disallowance of depreciation thereupon for Rs. 4,28,625/-. 2. Facts qua the dispute are that the assessee was engaged in the business of St....

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.... statement of the supplier and their Income Tax Return etc. The AO concluded that assessee failed to conclusively establish the physical delivery of Machinery and hence added the same to the income of the assessee u/s 69 as unproved purchases. Consequently, depreciation on Machinery amounting to Rs. 4,28,625/- as claimed by the assessee was also disallowed. Aggrieved, the assessee preferred appeal....

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.... transport details of the Machinery and also could not procure confirmation letters from the supplier. VAT on purchase of Machinery was duly deposited by the 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, bei....

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....in Fixed Asset Register as per the provisions of The Companies Act but failed to produce the same before any lower authorities. Mere payment by banking channel does not validate the purchases. 4. We have heard the rival contentions and perused the material placed before us including the paper book. We notice that AO has proceeded to make the additions on the basis of suspicion that the purchases ....