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TMI Blog2017 (3) TMI 26X X X X Extracts X X X X X X X X Extracts X X X X ..... ences produced by the assessee. But, he did not bring anything on record. In our opinion, the FAA had rightly held that the provisions of section 69C cannot be invoked for bogus purchases. In these circumstances, we are of the opinion that his order does not suffer from any legal or factual infirmity. The cases relied upon by him support the view taken by us. Confirming the order of the FAA, we decide the effective ground of appeal against the AO. - ITA No. 768/Mum/2015 - - - Dated:- 6-1-2017 - Shri Rajendra, Accountant Member And C. N. Prasad, Judicial Member Revenue by : Shri Asgar Zain Assessee by : Shri Dhaval Shah ORDER Per Rajendra A. M. Challenging the order dated 5. 11. 2014, of the CIT(A)-33, Mumbai, the A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he sales against the purchase and payment for the purchase were made by cross account payee cheques yet it would not make the purchase genuine. He further observed that the assessee had purchased the goods in cash from the market and the sales bills were obtained from hawala dealers. Finally, he added a sum of ₹ 3. 15 crores to the total income of the assessee holding that he had violated the provisions of section 69C of the Act. 3. Aggrieved by the order of the AO, the assessee preferred an appeal before the first appellate authority(FAA) and made elaborate submissions. He relied upon the cases of the JMD Computer(321 ITR 6) and Prakashchand (301 ITR 134), Babulal Borana (282 ITR 251) and Rajeev J Kalatha (ITA/1627/Mum/2012). A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Kalidas Jewellers Pvt. Ltd. (54 SOT 29) and Sagar Bose (56 ITD 561) and held that there was no material on record to show that the assessee had purchased material from unexplained cash available with him, that no addition could be made u/s. 69C of the Act, that it was not the case of the AO that the payments against the purchases were in cash, that all the payments had been made through account payee cheques and were debited in the bank account of the assessee. Referring to the case of Rajeev J Kalatha (supra), the FAA held that the observations of the Tribunal were applicable to the facts of the case under consideration, that the AO had merely relied upon the information received from the Sales Tax Department, that the facts of sale of go ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the purchases should be added to the income of the assessee. Finally, he directed the AO to disallow 10% of the alleged bogus purchases by ₹ 31. 57 lacs. 5. During the course of hearing before us, the Departmental Representative (DR) supported the order of the AO. The Authorised Representative (AR) stated that the provision of section 69C were not applicable. We have heard the rival submissions and perused the material before us. We find that after receiving the information about hawala dealers, the AO directed the assessee to furnish certain details, that he held that there were no evidence to hold that the purchases made by the assessee were genuine, that he invoked the provisions of section 69C of the Act and made an addi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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