2015 (2) TMI 1412

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....om different parties. 3. Rival contentions have been heard and record perused. The grievance of the assessee pertain to the addition to the total income on account of 'unproved purchases' of Rs.29,53,125/- and Rs.15,18,750/- for the AYrs.2006-07 & 2007-08 respectively. It is mentioned in the assessment order that the issue of bogus purchases of paintings came to, light during the search & seizure action u/s.132 of the Act. It is stated in the assessment order that the Investigation Wing had investigated' into certain purchases of paintings shown by the assessee group and established them as bogus on the basis of investigation carried out on various suppliers. It is further stated by the AO that the statements of Mr. Krishna K....

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....nied having sold paintings to the assessee and refused to accept that the said bills were issued by them. On the basis of these findings, the AO held that the following purchases as unproved purchases : A.Y.2006-07     1. M/s Raj Enterprises Rs.29,53,125/- A.Y.2007-08 M/s Trishala Tradewings Rs.15,18,750/- 4. By the impugned order, the CIT(A) confirmed the addition against which the assessee is in further appeals for both the assessment years before us. 5. It was argued by ld. AR that paintings were purchased by issuing account payee cheque which was duly credited in the account of seller. The paintings were physically found during the course of search, therefore, mere decline by seller will not be....