TaxTMI 
TaxTMI 
2019 (7) TMI 305
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....ing Officer making an addition of Rs. 1,63,15,869/in respect of the purported purchases shown in the name of alleged bogus biller/ accommodation entry provider M/s.Shree Enterprises? B. Whether on the facts and in the circumstances of the case and in law, the Tribunal was justified in not upholding the addition made by the Assessing Officer under section 69C of the Act and holding that the source of expenditure in purchasing the goods was explained? C. Whether on the facts and in the circumstances of the case and in law, the order of the Tribunal is perverse as no reasonable person acting judicially and properly instructed in the relevant law, could arrive at such a finding on the evidence on record?" 2. The respondent-....
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....as he had taken credit under MVAT Act. Section 69C of the Act is an independent section and can be invoked if certain conditions are fulfilled. The AO had ignored the documentary and corroborative evidences produce by the assessee in form of bank statements, declaration made under MVAT Act, TIN No., stock registering containing quantitative details. Except referring to the information received from the sales tax department the AO had not carried out any independent inquiry. If the evidences produced by the assessee are weighed against the information of the Sales tax department, it becomes clear that piece of the information was too light. Maxium it was a starting point for further investigation. But, the AO stopped at the beginning and mad....
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.... his tax invoice with date, Name and Address of Purchase party, particulars of goods, calculation of MVAT with rate as applicable declaration under MVAT Act, 2002 and accordingly the three invoice produced by the appellant from the supplier M/s.Shree Enterprise reflects Date, Name of the Purchaser with Address, TIN Number, PAN and declaration under MVAT Act, 2002, the said Tax Invoices were duly signed. The appellant has also filed photocopy of three invoices with quantitative Tally with A.O. and since the tax invoices contained signature the same do not suffer from any defect. It is a fact that the purchases have been made through Account Payee cheque only and the same are duly reflected in the bank statement of the appellant. The....
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....ving any money back in respect of the purchases, in question, the purchases could not be held to be bogus. The A.O. has made additions merely on the basis of observations made by the Sales Tax Department, for which he has not conducted ;any independent enquiries where as the appellant has discharged its primary onus by producing books of accounts with Stock Register, payment which was made by way of Account Payees cheque, Tax Invoices and bank statements during the assessment proceedings. Hence, such addition could not be sustained. In the case of INCOME TAX OFFICER vs. PERMANAND (2007) 107 TTJ (Jd) 395 it was held that, "AO could not make addition in the hands of the assessee merely on the basis of observations made by the Sales-tax Depart....