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TMI Blog2014 (6) TMI 741X X X X Extracts X X X X X X X X Extracts X X X X ..... e purchases of diamond from M/s. Sanjay Enterprises, Surat by the assessee was accepted in scrutiny assessment framed u/s 143(3) of the Act - The sales figures of the assessee have not been disturbed by the department. The CIT(A) has recorded that the AO has not verified the records of the transacting parties which are available in his own Range and the details of which was provided by the assessee - even during the course of remand proceedings, the AO has not verified the facts either from the IT records or by issue of summons u/s 131 of the Act to the transacting parties - there is no mistake in the order of the CIT(A) in holding that the assessee has been able to establish genuineness of the purchases from the two Surat parties – Deci ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the assessee could not prove the genuineness of purchases amounting to Rs.90.04 lakhs pertain to items of purchase of diamond claimed to have been purchased from M/s.Sanjay Enterprise, Surat and M/s.Vishal Overseas, Surat during the year. He submitted that merely because the payment of purchases was made per account payee cheque by the assessee, it could not be said that the assessee has discharged its onus of proving the genuineness of the purchases. He relied on the decision of ITAT, Ahmedabad Bench in M/s.Veera Exports Vs. ACIT, ITA No.966/Ahd/2007 dated 30.4.2008 wherein held that mere payment made through banking channel is not sufficient, and the establishment of genuineness of party of purchase of diamonds is necessary. 4. T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... case was able to prove the genuineness of two items of purchase of diamonds from Surat parties. The assessee has filed necessary documentary evidences in support of its claims of purchase in the form of purchase invoices, evidences of payment through banking channels during the year and outstanding amounts in subsequent year, confirmations from the transacting parties and relevant extracts of the bank statements of the transacting parties, books of accounts and stock statements. In the immediately preceding assessment year, the purchases of diamond from M/s. Sanjay Enterprises, Surat by the assessee was accepted in scrutiny assessment framed under section 143(3) of the Act. The sales figures of the assessee have not been disturbed by the d ..... X X X X Extracts X X X X X X X X Extracts X X X X
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