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TMI Blog2017 (10) TMI 585X X X X Extracts X X X X X X X X Extracts X X X X ..... uction of addition made on account of bogus purchases. Whereas, in the cross objection the assessee apart from challenging the addition partly sustained by the learned Commissioner (Appeals) on account of bogus purchase has also raised a legal issue challenging the validity of re-assessment under section 147 of the Income-tax Act, 1961 (for short "the Act"). 3. At the outset, we propose to deal with the ground raised by the Revenue in its appeal along with corresponding ground raised on merits by assessee being ground no.5 of the cross objection. 4. Brief facts are, the assessee a company carries on business in trading of diamond. For the assessment year under dispute, the assessee had originally filed its return of income on 29th August ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssing Officer conducted enquiry independently by issuing notices under section 133(6) of the Act to the concerned parties calling for various information as noted in Para-5 of the assessment order. In response to the query raised by the Assessing Officer, the assessee submitted purchase and sale invoices, stock register, ledger copies, bank statement showing payment made to the parties, etc. Further, in response to the notices issued under section 133(6), the two parties from whom the assessee had purchased goods also complied by furnishing informations as were called for by the Assessing Officer. However, the Assessing Officer did not accept the purchases made from the two parties to be genuine on the reasoning that the assessee could not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... made by the assessee was examined by the Assessing Officer thoroughly and the Assessing Officer had disallowed purchases made from two parties amounting to Rs. 62,98,980, which were subsequently deleted by the Tribunal. In the original assessment proceedings, the Assessing Officer has not doubted the purchases made from these two parties. He submitted, even in the re-assessment proceedings also the assessee has again submitted all documentary evidences to prove the genuineness of the purchases made from the two parties. He submitted, the concerned parties have also complied to the notices issued under section 133(6) of the Act by the Assessing Officer by furnishing of documentary evidences in support of the sales made to the assessee. He su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... section 143(3) of the Act, for the impugned assessment year, it is revealed that the Assessing Officer had specifically examined the purchases made by the assessee during the relevant previous year. After examining the details, the Assessing Officer called upon the assessee to prove the genuineness of certain purchases excluding the purchases made from the two parties which are subject matter of dispute in the present appeal. After examining the details, the Assessing Officer disallowed purchases of Rs. 62,98,980, from two parties and added back to the income of the assessee. However, in appeal proceedings, the Tribunal deleted such addition. Even during the re-assessment proceedings, in response to the query raised by the Assessing Officer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... see in the account of the suppliers there was no cash withdrawal to indicate that money was refunded back to the assessee. Further, the Assessing Officer has also accepted the fact that though the genuineness of purchases from these two parties is doubted but the genuineness of purchases as a whole cannot be doubted since the assessee has not only maintained the details of stock but was able to co-relate purchases with sales by furnishing quantitative details. Thus, from the aforesaid facts, it is very much clear that all documentary evidences available on record prima-facie demonstrate the genuineness of purchases made from the concerned parties. More so, when the concerned parties themselves in response to notices issued under section 133 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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