2020 (4) TMI 488

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.... the assessee. 3. Nobody appeared on behalf of the assessee inspite of issuance and service of notice and no adjournment petition was also filed by assessee, therefore, Bench decided to dispose the appeal after considering the contention of ld. DR and material placed on record. 4. We have gone through the orders of the authorities below and found from record that AO got information from Sales Tax Department regarding assessee involved in taking accommodation bill without physical delivery of the goods. Accordingly, assessment was reopened and during the course of re-assessment proceedings, AO made detailed enquiry with regard to the alleged purchases and found that purchases were not genuine, accordingly, AO added only 12.5% of allege....

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....ivil Procedure Code which applies on all fours to the income-tax proceedings. It is trite that once a transaction is shown to be of the nature of income, the onus shifts to the assessee to show that the same is not taxable. It can thus safely be assumed that the appellant has grossly failed in his duty to mitigate the burden cast upon it in so far as proving the genuineness of the transaction from the said parties are concerned. 8.3.2 In this regard, it is also pertinent to mention that while dealing with the concept of burden of proof, onus of proving is always on the person who makes the claim and not on the Revenue. While dealing with the issue of deciding the burden of proof, Hon'ble Supreme Court in the cases of CIT Vs. Du....

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....eality of the recitals made in those documents. 8.3.3 The onus to prove that apparent, is not the real one, is on the party who claims it to be so, as held by the Hon'ble Supreme Court in the case of CIT v. Daulat Ram Rawatmull [1973] 87 ITR 349 and CIT v. Durga Prasad More (supra). In the latter case, it has been held by the Apex Court that though an apparent statement must be considered real until it was shown that there were reasons to believe that apparent was not the real, in a case where an authority relied on self serving recitals in documents, it was for the party to establish the proof of those recitals; the taxing authorities were entitled to look into the surrounding circumstances to find out reality of such recitals....

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....e case of CIT vs. Simit Sheth 356 ITR 451 (Guj) wherein also it is found that some of the alleged suppliers of steel to the assessee had not supplied any goods but had only provided sale bills and hence, purchases from the said parties were held to be bogus. The AO in that case added the entire amount of purchases to gross profit of the assessee. Ld. CIT(A) having found that the assessee had indeed purchased though not from named parties but other parties from grey market, partially sustained the addition as probable profit of the assessee. The Tribunal however, sustained the addition to the extent of 12.5%. Taking into account the above facts, the Hon'ble Gujarat High Court held that since the purchases were not bogus but were made fro....