2021 (3) TMI 150

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....UNTANT MEMBER: The present Appeal has been filed by the revenue against the order of Ld. Commissioner of Income Tax (Appeals) - 2 in short referred as 'Ld. CIT(A)', Thane, dated 10.04.19 for Assessment Year (in short AY) 2010-11. 2. At the outset, it is noticed that none appeared on behalf of assessee in spite of calls and even no application for adjournment was moved. On the other hand, Ld.....

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.... purchases made from these parties are genuine. The courts have held that payment made by cheque itself is not sacrosanct so as to prove the genuineness of the purchases when the surrounding circumstances are suspect. However, the assessee has shown onwards sales which has not been doubted by the AO. By relying on the decision of Hon'ble Gujrat High Court in the case of CIT vrs. Smith P. Sheth 356....

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....on the assessee and the same has failed to discharge it in relation to the purchases made from the non-existent vendors. 3. On the facts and in the circumstances of the case, and in law, the Ld. CIT(A) has erred in ignoring, the fact that the assessee could not substantiate its claim of purchases from non-existent vendors by means of relevant supporting documents related to movement of go....

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....d circular. Therefore, the order of the CIT(A) may kindly be vacated and that of the AO may be restored. 6. The appellant craves leave to add, amend, alter or delete any ground of appeal. 6. Considered the submission of Ld. DR and material placed on record. We are of the considered view that no doubt the purchases made from the suspected parties are not genuine. However, the p....