2017 (12) TMI 739

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....ng Officer. 2. Briefly stated the facts are that the assessee which is into the business of trading in software filed return on 15.10.2010 declaring loss of Rs..50,000/-. The assessment was completed on 30.03.2013 determining the income of the assessee at Rs..10,21,14,250/- while completing the assessment the Assessing Officer made addition of Rs..10,00,92,534/- as unexplained expenditure u/s 69C of the Act in respect of the purchases made from seven (7) parties referred to in Page No.2 of the Assessment Order. In the course of the Assessment Proceedings the Assessing Officer issued notices u/s 133(6) of the Act calling for information from all these seven parties, notices returned unserved in all the cases except in the case of Samkit T....

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....hat the book results do not reflect the true state of affairs in view of unexplained expenditure made in purchases during this Assessment Year for the reasons mentioned in Para 4 of the Assessment Order. Having rejected the Books of Accounts the Assessing Officer estimated the income of the assessee i.e. net profit from trading of goods at 2% of the turnover in addition to the disallowance made u/s. 69C of the Act on account of non-genuine purchases. 4. On appeal by the assessee the Ld.CIT(A) considering the submissions of the assessee and various case laws into consideration and also the remand report on the additional evidence produced by the assessee, the Ld.CIT(A) concluded that Assessing Officer is justified in rejecting the Books o....

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....tor Shri Vijay Shah in his statement recorded u/s 131 in the course of Assessment Proceedings wherein it has been admitted that the assessee company entered into only accommodation transactions of bogus purchases and sales transactions, held that assessee is not able to justify with documentary evidences the genuineness of the purchases and sales recorded in the Books of Accounts. Therefore, the Ld.CIT(A) held that entire purchases and sales transactions as per the assessee's own admission are only accommodation entries. He held that the retraction made by the assessee putting the entire blame on the staff at a later stage is only an afterthought. Therefore, he upholds the action of the Assessing Officer in rejecting the Books of Accounts w....