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TMI Blog2017 (2) TMI 561X X X X Extracts X X X X X X X X Extracts X X X X ..... of natural justice. Addition made by the AO could be deleted only on that account. However even on merits, additions made is not sustainable. He had invoked the provisions of section 69C and the said section deals with unexplained expenditure. In our opinion, the FAA had rightly held that section 69C could not be used for making additions for unaccounted purchases as alleged by the AO - Decided in favour of assessee - ITA No. 160/Mum/2015, ITA/1406/Mum/2015, ITA/1407/Mum/2015 - - - Dated:- 6-1-2017 - Rajendra (Accountant Member) And C. N. Prasad (Judicial Member) For the Revenue : S. K. Bipari-DR For the Assessee : Sanjay Parikh ORDER Rajendra (Accountant Member) Challenging the orders dt.17.11.14 of the CIT(A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... chases and added to its income. After considering the submission of the assessee he held that the sales tax authorities of Mumbai had carried out investigation in the cases where there were defaults of VAT set off credits, that it was found that there were certain parties who were engaged in the business of issuing bills as per the requirement of the customer, that sales tax authorities had recorded the statements of such parties, that the persons had agreed before the sales tax authorities that they had not supplied any material to the customers, that assessee had not produced the delivery challans, purchase orders, that it had only enclosed tax invoices and ledger account of the parties, that the onus was on the assessee to prove genuinen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... goods had been received by the assessee, that the expenditure was made through banking channels, that no addition could be made u/s. 69C. 4. After considering the assessment order and the submission of the assessee, the FAA held that it had purchased the toners from the above mentioned three companies. Referring to the case of Simit P.Sheth (356ITR451) of the Hon'ble Gujarat High Court and Bholanath Poly Fab P. Ltd.(355ITR290),he directed the AO to restrict the disallowance to the tune of 12% of the non-genuine purchases. 5. During the course of hearing before us the Departmental Representative (DR) supported the order of the AO. The Authorised Representative (AR) stated that purchases made by the assessee were genuine, that provi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for unaccounted purchases as alleged by the AO. The case laws relied upon by the assessee support the view taken by the FAA. Therefore, we are of the opinion that the order of the FAA does not suffer from any legal or factual infirmity. Therefore, confirming the same we decide First Ground of appeal against the AO. 7. Ground No.2 3 deal with admission of additional evidences by the FAA during the appellate proceedings. During the course of hearing before us the DR could not point out as to how grounds were emanating from the order of the FAA, as he had not admitted additional evidences, so Ground No.2 3 are dismissed. ITA 1406/Mum/15-AY.2010-11: 8. The effective Ground of appeal raised by the assessee is about sustaining the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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