2018 (5) TMI 2196

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....s 147 of the Income Tax Act, 1961 (hereinafter 'the Act'). 2. The only issue in this appeal of assessee is against the order of CIT(A) confirming the action of the AO in disallowing 100% bogus purchases amounting to Rs. 38,80,265/-. For this assessee has raised the following two grounds: - "1. On the facts and circumstances of the Appellant's case and in law the Id. Commissioner of Income Tax (Appeals) erred in confirming the action of Id. AO that the assessee has entered into accommodation transactions of bogus purchase solely relying on the information received from the Sales Tax department without any material evidence on record. 2. On the facts and circumstances of the appellant' Commissioner of Income Tax (Appe....

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....ee to file the details of purchase. The assessee filed copies of purchase bills from the above said parties, copies of ledger extract and copies of bank statements to prove the payments by cheque. The AO required the assessee to produce these parties for verification but assessee expressed his inability to do so. According to the AO, the assessee failed to establish the genuineness of the purchase and accordingly, he made addition of unproved purchase amounting to Rs. 38,80,265/- to the returned income of the assessee. Aggrieved, assessee preferred the appeal before CIT(A), who also confirmed the same at 100% of the bogus purchases by observing in para 5 and by following the decision of Hon'ble Superme Court in the case N. K. Proteins Ltd. ....

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....rchases were made, were not known, where the AO had issued summons u/s.131 of the Act to the parties and no person in the name of such party was found, then the Hon'ble High Court held that their latest addresses should have been supplied and the burden was upon the assessee claimed purchases were genuine. (7) Shri.Mukeshkumar Pukhraj Mehta vs. ITO Ward 8(3) Pune in ITA No.2026/PN/2014 A.Y.2010-11 order dated 03.11.2015. Recently, on similar issue of bogus purchases, the Hon'ble SC in the case N. K. Proteins Ltd. Vs. DCIT, ITR No. 242 /2003, order dated 16.01.2017 has dismissed the SLP of the assessee, confirming the order of the Hon'ble Gujrat High Court in the case of N K Proteins Ltd. vs. DCIT No. IT(SS) A N....