TaxTMI 
TaxTMI 
2026 (3) TMI 1169
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....which it is stated that delay in filing the appeal was purely unintentional and occurred due to genuine and unavoidable circumstances due to heavy workload. The Revenue has shown the sufficient cause not to filing the appeal within time, therefore, the delay is condoned and appeal is admitted for adjudication. 3. The Revenue raised the following grounds in appeal: 1. Whether on the facts and circumstances of the case the Ld. CIT(A) erred in deleting the income assessed by the AO at Rs. 4,25,47,065/- on estimation basis at 8% of the turn over u/s 145(3) of the Act. 2. Whether on the facts and circumstances of the case the Ld. CIT(A) has failed to appreciate the fact the AO's decision to reject the books of account and es....
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....025 allowed the appeal. The Ld.NFAC has observed in his order as under: "5.0 Decision 1. Ground of Appeal No. 1 - " That the Assessment order passed by learned officer of assessment unit is unlawful, unwarranted and against natural justice." 1.1 This ground is general in nature and does not require any adjudication. 2 Ground of Appeal No.II - "That the addition of Rs. 3,97,86,852 with the declared taxable income of Rs. 25,86,260 offered by your appellant by applying the ration of 8 percent of the turnover against the estimate basis is unlawful, unwarranted and against the natural justice." 2.1 The appellant is an individual proprietor of two concerns namely (i) M/s M.K Overseas and (ii) M/s Shiv ....
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....arties who have made purchases to comply with the notices send by the IT department. The AO should have conducted more in depth investigation to reach the conclusion that the assessee is involved in the bogus purchases method to reduce his income. Various judicial pronouncements have already settled the issue of bogus purchase. a. CIT VIs Anju Jindal 387 ITR 418( Punjab and Haryana)- "where for all purchases orders to be disallowed by AO, payments have been made by assessee through accounts payee cheques, Tribunal rightly deleted addition made by AO." b. CIT V/s Manish Enterprises 276 CTR 89- " 6. Since the tribunal had found from the materials on record that payments were made by accounts payee ....
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.... accommodation entries. If the AO doubted the genuineness of the said purchases, it was incumbent upon him to cause further inquiries in the manner in order to ascertain the genuineness or otherwise of these transactions. Without causing any further inquiries to be made in respect of the said purchases, the AO cannot make addition by estimating Net Profit as percentage of total turnover. The appellant should have been afforded an opportunity to cross examine those persons for non-response to information called for u/s 133(6) of the Act. The Hon'ble Bombay High Court in the case of CIT V/s Ashish International (|TA No. 4299/2009 has held that the genuineness of the statements relied upon by revenue is not established when the as....
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..... DR also submitted that the Assessing Officer issued the notice u/s 133(6) of the Income Tax Act, 1961 (in Short "the Act" ) but the only two parties furnished copy of accounts which shows the purchases were not genuine. 8. The Ld. AR of the assessee submitted the assessee has produced the details of purchase before the AO with PAN number and GST number. The assessee has discharged his burden by filing the purchase bills, bank statement and the ledger books of the assessee now the onus shifts to the revenue. He also submitted that assessee has duly discharged its initial burden of substantiating the genuineness of the purchase transaction by furnishing necessary documentary evidences. 9. We have heard the parties and perused the mate....