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2017 (12) TMI 52 - ITAT MUMBAIBogus purchases - CIT(A) restricted the additions to the tune of 3% of alleged bogus purchases - Held that:- The purchases are appearing in the books of the assessee and the assessee is seeking benefit of deduction of these purchases against its income, hence primary onus is on the assessee to prove that purchases are genuine and that too in the midst of incriminating statements of Sh Bhanwarlal Jain as well investigations conducted by DGIT(Inv.). We have also gone through the replies dated 25-03-2015 submitted by the assessee before the AO (page 29-303/pb) wherein the assessee has claimed to have submitted affidavits, tax returns including audited accounts , confirmations etc of these parties and these documents need verification and examination by the AO. Thus we are inclined to set aside the matter back to the file of the A.O for denovo determination of the issue on merits in accordance with law after conducting such enquiries and verifications as are necessary for completing the assessment in de-novo proceedings . If the department wants to rely on statement of Sh. Bhanwarlal Jain or of any other party which is recorded at the back of the assessee incriminating assessee or any other incriminating material to prejudice assessee, the copies of such statements and /or material shall be made available by the AO to the assessee before prejudicing assessee and an opportunity of rebuttal shall by provided by Revenue to the assessee including cross examination in accordance with principles of natural justice. The matter is set aside and restored to the file of the A.O for denovo determination of the issue on merits in accordance with law.
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