TaxTMI 
TaxTMI 
2021 (4) TMI 1338
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....ot justified in law and facts and circumstances of the case in confirming the addition of Rs.48,01,597/- made by learned Assessing Officer on account of alleged bogus purchases without pointing out any defect in the stock register and quantitative information furnished and rejecting the sales made. 2. Assessee has every right to made, add, delete, modify or alter any grounds of appeal at the time of hearing. 2. Briefly stated facts of the case are that the assessee filed return of income on 30/09/2013, declaring total income of Rs. 35,53,238/-. The scrutiny assessments under section 143(3) of the Income-tax Act, 1961 (in short 'the Act') was completed on 29/03/2016 after making disallowance of purchase expenses of Rs. 48,0....
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....d that same were identically computer-generated and appeared not to be genuine. Therefore, again the Assessing Officer asked the assessee to produce those parties to whom notice under section 133(6) of the Act was issued. The Assessing Officer also attempted to verify the genuineness of the parties through Inspector of his office. The Inspector reported that M/s Micro International and M/s Apex Traders could not be located as no such addresses existed. Regarding M/s Silver Line (India), the Inspector reported that an NGO named "Pehala Kadam" was running its operation at the given address for last 2 ½ year and said party did not exist at that address. 4.1 The Authorised Representative of the assessee was confronted with the report ....
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....n, the Assessing Officer has clearly mentioned in the Assessment Order that the addresses given by the Assessee are not correct. The Assessee has taken recourse of registration with the VAT Department. In this respect it is observed that not only VAT Department, even the Income Tax Department issues PAN Cards. But the Appellant does not take such arguments. This is difficult to say at this level that the proper inquiry was conducted by the VAT Department before the issue of TIN No. Even if it is assumed that at some point of time the parties managed to get VAT No. registered, by showing their address at a particular place, the reason for non existence of those addresses on subsequent inquiry is not explained at all. If the postal authoritie....
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....nd informing the same to the Assessing Officer to facilitate the examination. In another argument, the Appellant has stated that the goods purchased from these parties were subsequently sold and the Assessing Officer has accepted the sales. Therefore, she is not justified in a treating the purchases as bogus expense. With regard to this argument, it is held that the Assessing Officer has accepted the sales in terms of value shown by the Assessee. There was no requirement on the part of the Assessing Officer to doubt the value of the sales. The onus was on the Assessee to furnish the quantitative details of purchases and quantitative details of sales and justify the rates at which the sales were made. This exercise has obviously not been don....
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....x payer filed letter from the suppliers with stock reconciliation, however, in the instant case, neither confirmation, nor any stock reconciliation statements has been filed and therefore, the case relied upon is distinguishable. 7. We have heard rival submission of the parties on the issue in dispute and perused the relevant material on record. In the instant case, the Assessing Officer has disallowed the purchases of Rs. 48,01,597 shown by the assessee from three parties. According to the Assessing Officer, the bills issued by those parties are computer-generated identical bills and in his opinion same were not genuine. Further, on verification through notice under section 133(6) of the Act and through Inspector of his office, those pa....