TaxTMI 
TaxTMI 
2017 (11) TMI 183
X X X X Extracts X X X X
X X X X Extracts X X X X
....ards bogus purchases. 3. Briefly stated the facts are that, the Assessing Officer in the course of Assessment Proceedings noticed that assessee made the purchases of Rs..86,89,450/- from M/s. Ronak Industries, and the assessee was asked to produce the documentary evidences i.e. invoices, ledger account, stock register, lorry receipt, delivery challans, details of parties to whom stock has been sold etc. In response to the same assessee furnished certain details before the Assessing Officer vide letter dated 18.02.2013. Assessing Officer also issued notice u/s. 133(6) to the party M/s. Ronak Industries. However, the notice returned unserved. Assessing Officer also issued summons u/s. 131 of the Act to the said party but the same returned un....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ontaining the required details under VAT law i.e. name, complete address, Telephone No., TIN/CIN no. Of supplier, date, quality, quantity, rate and value of goods/material purchased. (ii) Copy of challans through which physical delivery of goods purchased have been received. (iii) Extract of stork register evidencing the inward and outward movement of respective goods received and sold exactly. (iv) Ledger extract of party containing transaction of the entire year. (v) Copies of bank statements highlighting the payments made through normal banking channels by account payee cheques. 5. Learned Counsel for the assessee submits that without appreciating with the evidences furnished, Assessing Officer merely on the basis of information....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... apparent from the assessment order that the basis for treating the purchases made by the Assessee from certain parties as mentioned in the assessment orders is only the information obtained by the Assessing Officer from Sales Tax department. We find that this information was not parted to the Assessee by the Assessing Officer. It is also not known as to what kind of information Assessing Officer has got from the Sales Tax department relating to the present Assessee before us. Solely based on this information obtained from Sales Tax department, Assessing Officer made addition. Thus, it is apparent that sole basis of addition is only the information obtained from the Sales Tax department by the Assessing Officer. The Assessee for whatever re....
X X X X Extracts X X X X
X X X X Extracts X X X X
....g Officer issued notices under section 133(6) to three parties out of which two notices were returned unserved by the postal authorities and in case of one of the parties through notice was served, there was no response. Therefore, he called upon the assessee to produce the concerned parties. As the assessee failed to produce the concerned parties, the Assessing Officer, therefore, primarily relying upon the information obtained from the Sales Tax Department, held the purchases to be bogus and made addition under section 69C of the Act. Though, it may be a fact that assessee was not able to produce the concerned parties before the Assessing Officer, for whatever may be the reason, fact remains during assessment proceedings itself the assess....
X X X X Extracts X X X X
X X X X Extracts X X X X
....t be accepted. Moreover, as rightly observed by the learned Commissioner (Appeals), when the payment to the concerned parties are through proper banking channel and there is no evidence before the Assessing Officer that the payments made were again routed back to the assessee, the addition made under section 69C cannot be sustained. Moreover, the decisions relied upon by the learned A.R. on careful analysis were found to be squarely applicable to the facts of the present appeal. Therefore, finding no infirmity in the order of the first appellate authority, we uphold the same by dismissing the grounds raised by the Department." 8. Further, the Hon'ble Gujarat High Court in the case of Bholanath Polyfab Pvt. Ltd [355 ITR 290] held that ....