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TMI Blog2017 (11) TMI 192X X X X Extracts X X X X X X X X Extracts X X X X ..... iaries to whom the parties have provided accommodation entries as deposed in the statements - Decided partly in favour of revenue - ITA NO.5591/MUM/2016, ITA NO.5633, 5634 AND 5635/MUM/2016 - - - Dated:- 31-10-2017 - SHRI C.N. PRASAD, HON'BLE JUDICIAL MEMBER AND SHRI N.K. PRADHAN, HON'BLE ACCOUNTANT MEMBER For The Assessee : Shri B.V. Jhaveri For The Department : Shri Saurabh Kumar Rai ORDER PER C.N. PRASAD (JM) 1. These appeals are filed by the Revenue for the Assessment Years 2009-10 to 2011-12 and assessee for the Assessment Year 2009-10 against the orders of the Learned Commissioner of Income Tax (Appeals) 53, Mumbai dated 30.06.2016. 2. The grievance of the Revenue in its appeals is that the Ld.CIT(A) erred in deleting the addition made u/s. 69C of the Act in respect of bogus purchases from M/s. Siddhi Enterprises, M/s Devchaya Trading Co. and M/s. D.C. Corporation, and the assessee in its appeal for the Assessment Year 2009-10 challenged the order of the Ld.CIT(A) in sustaining the disallowance u/s. 69C in respect of bogus purchases from M/s. Disha Transport Co. and M/s. D.K. Enterprises. 3. Briefly stated the facts are that, th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ( ii) The assessee could not produce any delivery challan, lorry receipt, the mode of transport of goods, evidence of payment of Octroi (if any), stock register, etc. from the alleged suppliers support of its claim that purchases are genuinely made from these parties. ( iii) The purchases of the assessee, per Se, are not the issue here and these alleged purchases are not being treated as bogus. The Sales Tax Department has come down hard on the pernicious practices indulged in by these unscrupulous traders figuring in the list of suspicious dealers-and it is evident that the assessee has not purchased the goods from these alleged suppliers. It is equally true that the goods, have somehow entered in the assessee's regular business. The assessee has been unable to give any convincing or cogent explanation as to how these goods happened to come in his possession. The assessee has, thus, incurred expenditure on such purchases which is not explained. The purchases are not being treated as bogus or sham rather the expenditure incurred on such purchases is treated as unexplained. ( iv) It is also clear from the statement given before the Assessing Officer by the Kapasi F ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at the worksites directly. Thus it was vehemently asserted that neither Shri Devang H. Kapasi nor Smt Chhaya Devang Kapasi had in their statements recorded by the department admitted to have issued any accommodation bills to the assessee. Therefore, in view of this position the purchases effected by the assessee from the above parties could by no means treated as non-genuine. Convinced with the submissions of the assessee the Ld.CIT(A) deleted the purchases made from M/s. Siddhi Enterprises, M/s Devchaya Trading Co. and M/s. D.C. Corporation in all these Assessment Years. However, the Ld.CIT(A) sustained the disallowance in respect of the purchases from M/s. Disha Transport Co. and M/s. D.K. Enterprises for the Assessment Year 2009-10. 6. The Ld.DR submits that the assessee did not produce any evidence before the Assessing Officer to substantiate the genuineness of the purchases made from these parties. The Ld.DR referring to the Assessment Order submits that assessee has simply said that the payments were made by account payee cheques and assessee could not produce any delivery challan, lorry receipt, mode of transportation of goods, evidence of payment of octroi, no stock reg ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... used the orders of the authorities below. We have also gone through the statement recorded from Smt Chhaya Devang Kapasi. The Assessing Officer based on the statement recorded from Smt Chhaya Devang Kapasi appears to have conducted survey proceedings in the premises of the assessee and in the course of the survey proceedings assessee Director though withdrawn the claim of purchases based on the statements recorded from Kapasi Family this was latter on retracted by filling an affidavit. All these assessments for Assessment Years 2009-10 to 2011-12 were reopened only based on the statements recorded from Kapasi family who have stated that they are providing accommodation entries to various parties. The assessee in the course of the Assessment Proceedings appears to have not furnished complete details in respect of the purchases made from these parties. However in course of the Appellate Proceedings the assessee produced confirmations from these parties Income Tax returns, VAT returns etc., and the Ld.CIT(A) considering the submissions taking note of the fact that the assessee s name is not appearing in the list of beneficiaries to whom the parties have provided accommodation entries ..... X X X X Extracts X X X X X X X X Extracts X X X X
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