TaxTMI 
TaxTMI 
2019 (12) TMI 961
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....id appeal and cross objection have been filed on the common issue relating to the addition made on account of non-genuine purchases. 3. Brief facts are, the assessee, an individual, is carrying on business as re-seller in ball bearing, hardware and general merchandise through his Proprietary concern Willson Engineering Co. For the assessment year under consideration, the assessee filed his return of income on 20th September 2011, declaring total income of Rs. 5,82,147. The return of income filed by the assessee was initially processed under section 143(1) of the Income-tax Act, 1961 (for short "the Act"). Subsequently, on the basis of information received from the Sales Tax Department that the assessee is a beneficiary of accommodation b....
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....o be treated as unexplained expenditure under section 69C of the Act and deserves to be disallowed. Accordingly, he added back the aforesaid amount to the income of the assessee. Being aggrieved, the assessee challenged the addition before the first appellate authority. 4. Learned Commissioner (Appeals), after considering the submissions of the assessee in the context of facts and material on record as well as judicial precedents available before him, agreed with the Assessing Officer that the assessee was unable to prove the genuineness of purchases. Further, he also agreed with the Assessing Officer on the issue of rejection of Books of Account. Having held so, learned Commissioner (Appeals) referring to the decisions of the Hon'bl....
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....d sales, delivery challan, etc., to prove the purchases. He submitted, only because the selling dealers could not be produced, the purchases cannot be added to the income fully. The learned Authorised Representative submitted, in course of assessment proceedings, though, the assessee had objected to the re-opening of assessment, the Assessing Officer without disposing of the objections of the assessee independently, has concluded the assessment. Thus, he submitted, the assessment order passed without disposing of the objection of the assessee is invalid, hence, deserves to be quashed. Without prejudice, the learned Authorised Representative submitted, since the assessee wants end of litigation, he would be happy if the profit on non genuine....
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....f bank statement. However, it is alleged by learned Commissioner (Appeals) that the assessee failed to produce current confirmation of purchases made from the concerned parties and was unable to produce concerned parties for examination. Therefore, he proceeded to add the profit element embedded in non-genuine purchases. Thus, from the aforesaid facts, it becomes clear that the assessee did produce some evidence including delivery challans which indicate delivery of goods at the premises of the assessee. No adverse inference of the Assessing Officer vis-a-vis the documentary evidence furnished by the assessee is discernible from the assessment order. Further, the assessee had furnished quantitative details of purchases and sales both before....