TaxTMI 
TaxTMI 
2017 (9) TMI 1581
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....% on the bogus purchases. 3. The facts and circumstances in all the three years under consideration are same, I therefore heard all the appeals together and now deciding the same through this consolidated order. 4. The facts of the case are that the assessee filed return of income for A.Y.2009-10, by declaring total income of Rs. 2,10,862/- on 26.09.2009. The same was processed u/s 143(1) of the Act. The case of the assessee was reopened for the reason that an intimation vide letter bearing No.DGIT (lnv.)/Corr.field/2013-14 dated 26/12/2013 has circulated a list of beneficiaries who have obtained accommodation entries for claiming bogus expenditure from parties who have issued bogus bills without delivery of goods as per investigation....
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....:- (i) that the primary onus was on the assessee to establish the genuineness of the purchases claimed by it. As per section 101, 102 and 106 of the Indian Act, the onus lies upon the assessee to prove all the expenses including purchases to the satisfaction of the AO, which was not discharged by the assessee. (ii) that mere filing of bills in support of purchases and payment through account payee cheque cannot be conclusive in a case where genuineness of transaction is in doubt. (iii) that payment by account payee cheque is not sacrosanct and is not sufficient to establish the genuineness of the purchase. Reliance was placed on Kachawala Gems vs. Jt.CIT (2007) 288 ITR 10 (SC). (iv) that the undisputed fa....
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....a specific findings of Maharashtra Sales Tax Department that these parties had issued false bills without delivery of goods and none of these parties were available at their addresses when verification letters u/s133(6) of the Act were issued. 7. In view of the above discussion, it was held by AO that the assessee has failed to prove the genuineness of purchases from these parties and purchases from these parties are bogus and non-genuine. However, as the assessee has been able to correlate the purchases of material with the allocation of goods and the sales thereof, it was assumed that the assessee has purchased these goods from the grey market and has introduced the same in his regular stock by obtaining bogus bills / accommodation bil....
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....9,868/- may be deleted., the AO had carried out independent examination/ verification as whether the goods purchased from so called bogus billers do exist or no but did not provide any information regarding the same to the assessee and also failed to examine assessee in this behalf and allow cross examination of the inspector who went to verify the details and also cross examination of the Sales Tax Authorities on whose information the learned assessing officer had relied in reopening the assessment. The AO failed to appreciate the evidence produced by the assessee as regards the receipt of goods, transportation receipt etc and was not justified in merely relying on the information received from the sales tax department in framing the impug....
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....no addition was called for on presumption. Further payment was made by A/c payee cheques this fact would over shadow all other short coming. Mather & Platt India Ltd, (1987) 168 ITR 493 (Cal.) Ramanand Sagar vs. DCIT (2002) 256 ITR 134 (Bom) 12. Reliance was placed on the decision of CIT vs. Nikunj Eximp Enterprises Pvt. Ltd. ITA "No. 5604 of 2010, Bombay High Court, order dt. 17/12-2012, wherein the entire additions on account of bogus purchases were deleted. Further reliance was placed on the decision of Babulal C. Borana vs. ITO (2006) 282 ITR 25T (Bom.) (HC), wherein the entire additions were deleted on the ground that the third parties to whom sales were made, were found to have been genuine and if sales were genui....