2019 (1) TMI 585

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....rchase, resulting in an addition of Rs. 1,37,557/-. 2. The assessing officer (A.O. for short) in this case has made 12.5% addition on account of bogus purchase amounting to Rs. 1,37,557/-. 3. Upon the assessee's appeal, the ld. CIT(A) confirmed the same. 4. Against the above order, the assessee is in appeal before the ITAT. 5. Brief facts of the case are that the assessee is a firm which is engaged in the business of trading in timber. The return of income for the year under consideration was filed by the assessee declaring a total income of Rs. 28,760/-. Subsequently, on the basis of the information received from the Investigation Wing, Mumbai, with regard to the assessee had taken accommodation bill for purchase through partie....

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....oods. The TIN number as appearing in the copy of invoices submitted by the assessee in support of purchases made from the above parties is same as that made available by the Sales Tax Department to the Income Tax Department. 8. The AO in his aforesaid assessment order has further mentioned that the Sale Tax Department had conducted independent inquiries in the case of each hawala operator, including in the case of above stated hawala operator and it was conclusively proved that these parties/operators were engaged in the business of providing accommodation entries only. These parties mostly indulged in following activities: "a) issuing only bills and doing non-genuine business (Hawala Business); b) not maintaining stock....

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....s of bank statements claiming that the purchases made were genuine as the payments have been made through banking channels. 10. The AO did not accept assessee's contention that the payment was made through banking channel and therefore, the purchases were genuine. Since, the assessee could not produce the abovementioned parties before the AO, it could not provide the evidences of the purchase like delivery challans, transport bills etc., and the assessee has not given any evidence which leads to the conclusion that the purchases were actually made by the assessee from the abovementioned parties and the said party actually existed. The AO has held that since purchases shown by the assessee during the year remains unverifiable, therefo....