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TMI Blog2016 (12) TMI 51X X X X Extracts X X X X X X X X Extracts X X X X ..... e were not verified by the lower authorities. On these facts, the assessee had duly discharged its initial onus to prove the purchases and onus was on revenue to confront the same. CIT(A) affirmed the same by noticing that the Sales Tax payment has been discharged by the assessee without seeking cross examination of the supplier before Sales Tax Department. But the proceedings before Sales Tax Department alone could not be the sole basis of addition in the hands of assessee before Income Tax Authorities. Further, as rightly observed by Ld. CIT(A), Section 69 had no applicability in the case of the assessee as the Machinery was duly recorded in the books of account. We are inclined to allow the appeal of the assessee and delete both the impu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... count, details of bank payment, financial statement of the supplier and their Income Tax Return etc. The AO concluded that assessee failed to conclusively establish the physical delivery of Machinery and hence added the same to the income of the assessee u/s 69 as unproved purchases. Consequently, depreciation on Machinery amounting to ₹ 4,28,625/- as claimed by the assessee was also disallowed. Aggrieved, the assessee preferred appeal before First Appellate Authority but was unsuccessful vide CIT(A) order dated 26/11/2014. The assessee contended that initial onus was duly discharged by him by supply of relevant documents but AO failed to make independent inquiries to find out genuineness of the transaction and merely relied upon webs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... made merely on the basis of website information without confirming the same from the supplier. The Ld. DR, on the other hand, contended that assessee being corporate assessee was required to maintain Fixed Asset Register as per the provisions of The Companies Act but failed to produce the same before any lower authorities. Mere payment by banking channel does not validate the purchases. 4. We have heard the rival contentions and perused the material placed before us including the paper book. We notice that AO has proceeded to make the additions on the basis of suspicion that the purchases have been made from Hawala entry operators listed on the website of Sales Tax Department but strangely, no independent inquiry to corroborate the trans ..... X X X X Extracts X X X X X X X X Extracts X X X X
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