TaxTMI 
TaxTMI 
2017 (4) TMI 653
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.... bogus purchase." 2. The brief facts of the case are that during the course of assessment proceedings for A.Y 2008-09, the Assessing Officer observed that the name of M/s Mahaveer Textile Mills figured in list of creditors where the amount exceeded Rs. 10 lacs. Information u/s 133(6) was called for from M/s Mahaveer Textile Mills and thereafter, summons were issued u/s 131 of the Act calling for the personal appearance of the said party. On non-complaince by M/s Mahveer Textile Mills, the assessee was asked to produce the said party along with certain documents. However, as the assessee could not produce the said party, the entire purchase transaction was held to be nongenuine and purchases of Rs. 13,39,969/- was treated as bogus and add....
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....ment against these claimed expenses have been made to the party till the year end. During the course of assessment proceedings, the assessee was asked to produce the said party for examination so that the genuineness of the transaction can be ascertained. On 07/9/2012, the assessee vide it's A/Rs letter of even date submitted that "Purchases from Mahaveer Textile Mill and Job work from Tara Devi Chhajer are genuine. We are not in position to present the party at present for verification kindly complete the assessment proceedings and oblige." Further, the Assessing Officer drawn reference to the assessment proceeding for AY 2008-09 and finally held that the assessee was accorded ample opportunity to produce the party so as to establish genui....
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.... to establish the fact of purchase. In view of the fact that an addition of Rs. 78,80,818/- was made in the assessment for A.Y 2008-09 on account of bogus purchases, the appellant should have made all the more efforts to establish genuineness of the purchase in the assessment for the relevant assessment year. Further, in view of past history, the appellant is not entitled for any benefit of doubt and thus, this ground is dismissed." 6. Now the assessee is in appeal against the order of the ld. CIT(A) and has submitted as under:- "The appellant is running a partnership concern in the name of M/s Beauty Tex (Florals India) doing manufacturing and 100% exports of embroidered Cloth, Curtain and made-ups 1. Books of accounts of appellan....
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....xported and same has not been doubted by the learned AO 5. GP Rate Higher than preceeding year.Export turnover during the AY 2007-08 was Rs. 6.40 Crores with GP rate of 29.72% which is higher than Turnover of Rs. 5 crores and GP Rate of 27.18% in the preceeding assessment year i.e. 2006-07 Assessment Year G.P. Ratio 2006-07 27.81% 2007-08 29.72% 2008-09 29.34% 6. In AY 2008-09 (PB-127) and 2010-11 (PB 139) in the appellant's own case, addition for bogus purchases was deleted, appeal was allowed and it has been held by Hon'ble ITAT Jaipur bench, Jaipur that: "The exports of the assessee are not doubted. Moreover the books of account of the assessee have not been rejected on account of unverifiable p....
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....s bogus and additions were ultimately deleted by the Coordinate Bench. Further, the AO has referred to certain conclusive evidences brought on record to treat the subject transaction as bogus but we are unable to see any such evidence which has been brought on record by the Assessing Officer either during the course of assessment proceedings for AY 2008-09 or the reassessment proceedings for the impunged AY 2007-08. The only grievance of the Assessing Officer is that the assessee has failed to produce the party so as to establish genuineness of the transaction and secondly, no payment has been made to the party till the year end. The ld.CIT(A) while confirming the disallowance has stated that though confirmation has been obtained from the p....