2021 (10) TMI 1049

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....following grounds of appeal: "1). The ld. CIT(A) has erred in confirming the addition of Rs. 3,50,000/- on account of Bogus Purchase under Sec 69 of the Income Tax Act, 1961. 2) The 'a' craves leave to alter, amend, delete, all or any ground of the appeal." 2. Brief facts of the case are that the assessee is Proprietor of M/s Ayush Impex, engaged in the business of purchase and export of diamonds. The assessee filed his Return of Income for the Assessment Year(AY) 2009-10 on 07.08.2009 declaring income of Rs. 1,72,069/-. Initially the case was processed under section 143(1). Subsequently, the case was reopened under section 147 of the Act. A notice under section 148 of the Act was issued on 30.03.2016. In response to the notice under s....

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.... The assessee filed its reply on 21.11.2016. In the reply, the assessee stated that he has purchased genuine and physical diamonds. The assessee exported the same to Abroad. The assessee is maintaining books of accounts and day to day stock register. 3. The reply furnished by assessee was not accepted by AO on the basis information received from Investigation Wing held that the Investigation Authorities have confirmed that received accommodation entries. The Investigation Wing further confirmed that the entry provider, in the name of numerous concerns imported rough and cut and polished diamonds for other clients, who do not want to show import in their books. So the entry providers issued accommodation bill for a commission of various par....

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....grieved, the assessee has filed the present appeal before this Tribunal. 5. We have heard the submission of ld. Authorised Representative (ld.AR) of the assessee and the ld. Senior Departmental Representative (ld.Sr.DR) for the Revenue and have gone through he order of authorities below. The ld.AR of the assessee submits that he has furnished the complete details of purchases. The assessee filed confirmation of account details of supplier and stock register, sale, purchase register, but the AO was not satisfied and made addition of 100% of purchases shown from the Nazar Impex Pvt. Ltd., The ld.CIT(A) also confirmed the addition. The ld.AR for the assessee submits that purchased shown by assessee are genuine. The assessee's total turnover d....

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....ons. The said group was engaged in providing accommodation entries without actual delivery of goods. In the accommodation entries, the documentary evidences are prepared in such a way that the accommodation bills and other documents are seen as a genuine entries. 8. We have considered the rival submission of both the parties and have gone through the orders of Lower Authorities. There is no dispute that assessee have shown purchases of Rs. 3,50,000/- from Nazar Impex Pvt. Ltd., the assessee filed confirmation invoices and bank statement to substantiate that purchases are genuine. Similarly it is also undisputed fact that the said Nazar Impex is managed by Rajinder Jain Group. The said group has shown their income as commission income. No s....