2026 (1) TMI 1642

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.... been upheld. 2. By way of the grounds raised, the assessee has challenged, firstly, the validity of assumption of jurisdiction under section 147 of the Act, and secondly, on merits, the addition of Rs.59,11,774/- made by treating the purchases as bogus. 3. The brief facts, necessary for the present adjudication, are that the assessee is engaged in the business of trading and export of cut and polished diamonds. The return of income for the year under consideration was filed on 05.08.2010 and was processed under section 143(1) of the Act. Subsequently, the assessment was reopened under section 147 on the basis of information received from the Investigation Wing pursuant to a search and seizure action conducted by the Directorate Gener....

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....ences stood filed on record. However, the learned CIT(A) confirmed the addition by largely reiterating the findings of the Assessing Officer. 7. We have heard the rival submissions at length and have carefully perused the material available on record. It is an admitted and undisputed position that the assessee has furnished comprehensive documentary evidence in support of the purchases made from both M/s. Aadi Impex and M/s. Kailash Enterprises. The evidences placed before the Assessing Officer, in respect of both the parties, include income tax return acknowledgements, copies of purchase invoices, account confirmations, bank statements evidencing payments through account payee cheques, and sworn affidavits affirming the genuineness of t....

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....neous documentary evidence, coupled with quantitative reconciliation and accepted sales, the evidentiary burden shifts squarely upon the Revenue to rebut such material by way of independent enquiry or by bringing on record cogent and tangible evidence to the contrary. Mere reliance on third-party information or general investigation reports, without confronting the assessee with any specific incriminating material and without undertaking any meaningful verification, cannot sustain an addition of this magnitude. 11. In the present case, despite the assessee having placed on record all primary and secondary evidences, no independent enquiry whatsoever has been conducted by the Assessing Officer. The suppliers were not summoned, the affidav....