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TMI Blog2016 (6) TMI 293X X X X Extracts X X X X X X X X Extracts X X X X ..... , the assessee a partnership firm is a wholesale and retail trader of cotton waste, chindi waste and rags waste. For the assessment year under consideration, assessee filed its return of income on 22nd September 2009, declaring total income of Rs. 1,47,584. In the course of assessment proceedings, the Assessing Officer found that as per the information available on record in the form of letter received from DGIT, who in turn, has received information from Sales Tax Department, the assessee has shown certain purchases from certain entities who provided only accommodation bills / entries, hence, they are bogus purchases. The details of such purchases are as under:- Name of the Party Amount (Rs. ) ISK Trading Co. 86,320 KRC Trading Co. 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cer also observed that the assessee had agreed for a reasonable addition on such purchases. Accordingly, the Assessing Officer concluded the assessment by making an addition of Rs. 3,41,117, being 12.5% of the purchase turnover of Rs. 27,28,934. Being aggrieved of such assessment order, the assessee preferred appeal before the learned Commissioner (Appeals). 5. The learned Commissioner (Appeals), however, was of the view that since the investigation conducted by the Sales Tax Department revealed that the parties concerned are providing accommodation bills and these parties also have admitted before the Sales Tax Department that they are not involved in actual purchase or sale transaction, the purchases shown by the assessee from the concer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... us. The learned Authorised Representative submitted, the Assessing Officer, though, has relied upon the statement of the sellers of goods stated to have been given before the Sales Tax authorities, but the assessee was neither confronted with such statements nor was given opportunity to cross-examine the concerned parties. He, therefore, submitted in the absence of any adverse material brought on record to prove the claim of assessee false the addition made by estimating profit on the so called bogus purchase is unjustified. The learned Authorised Representative submitted, under identical facts and circumstances, the Tribunal deleted the additions made by the Department in the following cases:- i) DCIT v/s Rajiv G. Kalathil, ITA no.6727/M ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of assessment proceedings for addition at reasonable basis on the so called bogus purchases. Reverting back to the merits of the issue, on a perusal of the assessment order, it is quite clear that on the basis of information obtained from the Sales Tax Department, the Assessing Officer had concluded that the concerned parties from whom the assessee claimed to have purchased goods were not involved any purchase or sale transaction and are only providing accommodation bills. Though, the assessee in the course of assessment proceedings had submitted the ledger account copies of the concerned parties in the books of the assessee, purchase and sale invoice and bank statement showing payment made to them but the Assessing Officer apparently ignor ..... X X X X Extracts X X X X X X X X Extracts X X X X
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