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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 ..... essing Officer should have conducted necessary enquiry keeping in view the aforesaid fact. Without conducting any enquiry, the Assessing Officer solely relying upon the investigation made by the Sales Tax Department cannot make the addition, that too, on the basis of untested material. Therefore, we are of the view, the addition made on account of estimation of profit by treating the purchases as bogus has no legs to stand. Accordingly, we delete the same. - Decided in favour of assessee - ITA No. 25/Mum./2016 - - - Dated:- 27-5-2016 - Shri Saktijit Dey, Judicial Member And Shri Ramit Kochar, Accountant Member For the Assessee : Shri Deepak Tralshwala For the Revenue : Shri Vishwas S. Jadhav ORDER Per Saktijit Dey, J. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... om the Sales Tax authorities, the assessee had shown purchases of ₹ 27,28,934 from the aforesaid parties during the financial year relevant to the assessment year 2009 10 and as per the investigation conducted by the Sales Tax Department, it was found that these parties were not doing genuine business of purchases and sale and merely indulged in providing accommodation bills. As observed by the Assessing Officer, during the assessment proceedings, the assessee was asked to furnish ledger account, copies of bills along with the payments made, documents relating to transportation and receipts of the goods purchases, copy of bank account, etc. As alleged by the Assessing Officer, though, the assessee submitted the ledger accounts of conc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 10.41% instead of 12.5% adopted by the Assessing Officer. 6. Disputing the observations of the Assessing Officer that the assessee has admitted for estimation of profit on the purchases the learned Authorised Representative submitted, the assessee in course of assessment proceeding has not made any such admission. As far as merit of the issue is concerned, the learned Authorised Representative submitted, in the course of assessment proceedings, the assessee has submitted all relevant and necessary supporting document such as purchase sales bills, ledger account copies of concerned parties, bank statement showing payment made to them to prove the genuineness of the purchases. He submitted, the Assessing Officer has not made any enquiry ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... /s Ramila Pravinshah, ITA no.524/Mum./2013, dated 5th March 2015; and iv) CIT v/s Nikunj Exim Enterprises Pvt. Ltd., 372 ITR 619. 7. Learned Departmental Representative on the other hand relying upon the observations of the learned Commissioner (Appeals) submitted, since on the basis of information obtained from Sales Tax Department, it was found that the concerned parties from whom the assessee claimed to have purchased goods are only providing accommodation bills and have also admitted to that effect before the Sales Tax Authorities, the Assessing Officer was justified in estimating the profit by treating the purchases as bogus. 8. We have considered the submissions of the parties and perused the material available on record ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the concerned parties had admitted before the Sales Tax Authorities that they are providing accommodation bills. It is evident on record that the Assessing Officer has not conducted any independent enquiry from his side to ascertain / verify the fact as to whether the purchases made by the assessee are genuine or not. Moreover, it is evident that the Assessing Officer has relied upon the statement recorded from the parties before the Sales Tax authorities to draw adverse inference against the assessee. As it appears, neither the Assessing Officer had confronted the adverse material to the assessee nor has allowed the assessee to cross examine the concerned persons. Therefore, the adverse material used by the Assessing Officer in detrim ..... X X X X Extracts X X X X X X X X Extracts X X X X
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