2020 (8) TMI 62

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.... contentions have been heard and record perused. Brief facts of the case are that the assessee is a company engaged in the business Manufacturer of mould and its articles. The case was re-opened on the information received by Income tax Mumbai from Sales Tax Department through DGIT(Inv.), Mumbai that assessee was engaged in the practice of inflating the purchases through the hawala parties by taking bogus bills without delivery of goods from parties. On the basis of information from Sales Tax Department, Ld. A.O. made addition at 100% of alleged Purchase and Ld. CIT(A) confirmed the same at 100% of alleged purchase. By the impugned order the CIT(A) confirmed the action of the AO against which the assessee is in further appeal before the ....

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....purchased goods from these parties and payments thereof were made vide account payee cheque. The learned counsel for the assessee also filed complete books of account of transactions, purchase bills, acknowledgement of goods to prove the genuineness of purchase. With regard to the observation of the AO that the supplies of the goods have given statement to the effect that they have only given bills without supply of goods, the contention of the learned counsel for the assessee is that the alleged statements of the owners of the said concerns are not provided to the assessee, if any recorded. The Assessing Officer is a quasi judicial authority. He must exercise an independent mind while framing an assessment. While doing so, he must act in t....

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....TAT judgment in the case of Amit Mody v/s ITO 25(2)(1). 5. On the other hand, the learned D.R. relied on the orders passed by the authorities below and contended that the AO has made detailed enquiry with regard to the genuineness of purchases and thereafter came to the conclusion that only to reduce the profit assessee has taken purchase bills without actual delivery of goods. He contended that the orders the authorities below should be upheld. 6. I have considered the rival contentions and carefully gone through the orders of the authorities below. I have also deliberated on the various judicial pronouncements referred to by the lower Authorities in their respective orders as well as cited by the learned A.R. during the course of he....