2016 (8) TMI 1594

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..... DR. 2. Only issue raised in the various grounds of appeal is qua upholding the addition of Rs. 2,48,344/- by the ld.CIT(A) as made by the AO under section 69C of the Income Tax Act, 1961(hereinafter referred to as the Act) on account of peak cash credit in respect of alleged bogus purchase from Paras Sales Corporation and Rashmi Enterprises. 3. Facts of the case are that the assessee filed its return of income on 28.09.2010 declaring a loss of Rs. 2,74,139/-, which was processed u/s 143(1) of the Act. Thereafter, the case of the assessee was selected for scrutiny and statutory notice u/s 143(2) dated 2.9.2011 and 142(1) along with questionnaire dated 7.6.2012 were issued and served upon the assessee. During assessment proceedings, the A....

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....sment proceedings, appellant has not established the fact that actual purchase were made from these two parties. Assessing Officer has issued notices to these parties nevertheless no response was received. Therefore, it was the responsibility of the appellant to produce some other reliable and verifiable evidences, but it is seen from the representation dated 19.6.2014, or from above submission that appellant is not able to establish the purchases shown from these parties. Since, appellant / A.R. has admitted the ingenuineness of the purchases and has worked out the peak credit of Rs. 2,48,344/-, there is no option left out but to approve the finding of the Assessing Officer. Considering the inability of the appellant to establish the purch....