9911796707
TMI Blog2021 (3) TMI 150X X X X Extracts X X X X X X X X Extracts X X X X ..... een filed by the revenue against the order of Ld. Commissioner of Income Tax (Appeals) - 2 in short referred as 'Ld. CIT(A)', Thane, dated 10.04.19 for Assessment Year (in short AY) 2010-11. 2. At the outset, it is noticed that none appeared on behalf of assessee in spite of calls and even no application for adjournment was moved. On the other hand, Ld. DR is present in the court and is ready wit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The courts have held that payment made by cheque itself is not sacrosanct so as to prove the genuineness of the purchases when the surrounding circumstances are suspect. However, the assessee has shown onwards sales which has not been doubted by the AO. By relying on the decision of Hon'ble Gujrat High Court in the case of CIT vrs. Smith P. Sheth 356 ITR 451 (Guj), he reduced the disallowance @ 5% ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion to the purchases made from the non-existent vendors. 3. On the facts and in the circumstances of the case, and in law, the Ld. CIT(A) has erred in ignoring, the fact that the assessee could not substantiate its claim of purchases from non-existent vendors by means of relevant supporting documents related to movement of goods, stock register, etc. to restrict the addition to 5% of bogus purch ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e AO may be restored. 6. The appellant craves leave to add, amend, alter or delete any ground of appeal. 6. Considered the submission of Ld. DR and material placed on record. We are of the considered view that no doubt the purchases made from the suspected parties are not genuine. However, the purchases itself cannot be doubted as rightly adjudicated by Ld. CIT(A) that AO has not doubted sales ..... X X X X Extracts X X X X X X X X Extracts X X X X
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