2017 (2) TMI 1390

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....f appeal is "whether they landed Commissioner (Appeals) erred in deleting the unexplained expenditure of Rs. 56247992/- under section 69C of the Act, on account of bogus purchases. Rest of the grounds of appeal is argumentative in nature. 2. The brief facts of the case are that assessee is an individual and engaged in the business of Civil Construction. The assessee filed return of income for the relevant Assessment Year on 29 September 2009 declaring total income at Rs. 82,38,200/-. The assessment was completed under section 143(3) on 29 December 2011 assessing total income of Rs. 10558480/-. Subsequently, the assessment was reopened under section 147 of the Act. The notice under section 148 dated 19/2013 was served upon the assessee. T....

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....e appearing in the list of suspicious dealer and were indulging in issuing bogus bills without any supply of goods or material for commission basis. The AO issued notice under section 133(6) on 15 Jan 2014 to all those parties. The notice issued to all the parties were returned reserved. On return of the said notices the assessee was asked to show cause as to why the purchases from the said parties aggregating to Rs. 5,62,47,992/- should not be treated as unexplained expenditure. Assessee filed his reply vide reply dated 28 January 2014. The contention of assessee was not accepted by AO. The AO made the addition of the aggregate of the purchases totaling Rs. 5,62,47,992/- in assessment order passed under section 143(3)rws 147 dated 28 March....

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....r section 133(6) were returned unnerved. The Sale tax Department had recorded the statement of the proprietors of all those parties and the copies of statement were provided to the assessee along with the show cause notice. The contention of the assessee that purchases have been recorded by him in the books of account is not tenable. Further, the contention of the assessee that payments were made through account payee cheques is not sufficient for claiming any expenditure. During the first appellate proceeding the assessee besides the contention as urged before the AO submitted that the AO made the similar addition for assessment year 2010-11 on similar grounds, and/or appeal same were deleted. The assessee further contended that books of a....