2018 (11) TMI 504

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..... refore, the proceedings were validly initiated and we concur with the stand of lower authority in this regard. This ground of assessee’s appeal stand dismissed. So far as the merits concerned, there could be no sale without purchase of material since the assessee was engaged in trading activities. The sales turnover achieved by the assessee has not been disputed by the revenue and the payments were through banking channels. The assessee was in possession of primary purchases documents. At the same time, the assessee could not conclusively substantiate the delivery of material and failed to produce any of the party to confirm the transactions. Notices issued u/s 133(6) elicited no satisfactory response. All these factors cast a serious do .....

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..... ing Ld. Departmental Representative [DR]. The issue involved under appeal is estimated addition against certain alleged bogus purchases. 2.1 The reassessment proceedings were initiated upon receipt of certain information from Sales Tax Department, Maharashtra regarding dealers indulging in bogus purchase bills and it was noted that the assessee stood beneficiary of such bogus purchase bills to the tune of ₹ 1,10,24,932/- from five such entities, the details of which has been extracted in para-2 of the quantum assessment order. Consequently, statutory notice u/s 148 dated 28/02/2014 was issued to the assessee which was followed by notices u/s 143(2) and 142(1). During impugned AY, the assessee being resident firm was eng .....

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..... tand of lower authority in this regard. This ground of assessee s appeal stand dismissed. 5. So far as the merits of the case are concerned, we are of the considered opinion that there could be no sale without purchase of material since the assessee was engaged in trading activities. The sales turnover achieved by the assessee has not been disputed by the revenue and the payments were through banking channels. The assessee was in possession of primary purchases documents. At the same time, the assessee could not conclusively substantiate the delivery of material and failed to produce any of the party to confirm the transactions. Notices issued u/s 133(6) elicited no satisfactory response. All these factors cast a serious doubt on asses .....

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