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TMI Blog2019 (7) TMI 305X X X X Extracts X X X X X X X X Extracts X X X X ..... ither nongenuine or that the same were made out of assessee s known source. As noted by the Commissioner (Appeals), the purchases were made through banking channel. The Assessing Officer had not rejected the books of accounts of the assessee. - Being a pure question of fact, no question of law arises. X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee had claimed that he had sold gold jewellery to PSJ that was purchased from SE, that the AO had made addition u/s. 69C of the Act, that the FAA had allowed the appeal of the assessee. In our opinion, the AO was not justified in invoking the provisions of section 69C of the Act just because SE was declared defaulter by the Sales tax department. We hold that default by a person under MVAT Act cannot be a base for making addition under Income tax Act in case of another person until and unless documentary evidence is not brought on record in the income tax proceedings proving the transaction was non-genuine. SE did not deposit tax in the treasury of State Government and later on the assessee had paid the required sum, as he had t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s made by the Assessing Officer, made following observations: "5.5 I have carefully considered the observations of the A.O. in assessment order as well as in remand report; the submissions of the appellant along with cross-objection against the remand report and the case laws referred to and relied upon by the appellant. The only issue in all the grounds of appeal is the disallowance of purchase amounting to ₹ 1,63,15,869/u/ s. 69C of the Income Tax Act, 1961 as unexplained expenditure. That the appellant has furnished the copy of Tax Invoice prepared under MVAT Act, 2002 with full details and signature. When the sale is made by the person registered under MVAT Act, 2002 then he is duty bound to issue his tax invoice with date, Na ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ogus as if there were no purchases at all. The appellant established his claims by furnishing relevant Tax Invoice, Bank statements. Since the appellant has offered to taxation sales to M/s.Pransukhlal & Sons Jewellers, he is entitled to deduction of consequent purchases from Shri Enterprise resulting in tax payment on the profit margin only. Otherwise, the disallowance of purchases from Shree Enterprise of ₹ 46,01,040/, ₹ 65,05,236/and ₹ 52,09,593/will result in double taxation. There cannot be sales without corresponding purchases and both the things cannot be taxed simultaneously resulting in taxing of Turnover instead of income. Since, there is no evidence of the appellant receiving any money back in respect of the p ..... X X X X Extracts X X X X X X X X Extracts X X X X
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