9911796707
TMI Blog2015 (12) TMI 1850X X X X Extracts X X X X X X X X Extracts X X X X ..... r (hereinafter referred to as the AO) on account of unexplained expenditure under section 69C relating to the purchase of goods. 3. The brief facts of the case are that the assessee is engaged in the business of manufacturing of flexible plastic materials and is also involved in trading activities. During the assessment proceedings, the AO noted that the assessee had made purchases to the tune of Rs. 1,07,61,920/- from two parties whose names were listed in the list of suspicious dealers as provided in the official website of Sales Tax Department, Government of Maharashtra, who were allegedly providing accommodation entries without doing actual business. The AO relied upon the statement taken by the Sales Tax Department from some of the ab ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .2012 and further of the Hon'ble Calcutta High Court in the case of "Diagnostics v. CIT" (2012) 20 taxmann.com 692 (Cal.). The Ld. D.R. on the other hand, has relied upon the findings of the lower authorities. 6. We have considered the rival submissions. We find that the additions in this case have been made on the ground that name of the two suppliers figured in the list of suspicious dealers in the website of sales Tax department. Except that no evidence has been pointed out by the AO which may prove that the assessee has indulged in the bogus purchases. Even we find that the AO himself has admitted the purchases and sales as genuine. The following lines from the assessment order are relevant in this respect. "The purchases of the asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ought our attention to the decision of the Hon'ble Gujarat High Court in the case of "CIT vs. M.K. Brothers" (1987) 163 ITR 249 wherein it has been held that where there was nothing to indicate that the amount given by the assessee for the purchases made had come back to the assessee in any other form and where there was no evidence that the said concerns gave bogus vouchers to the assessee and even the statements made by the alleged suppliers in no way implicate the transaction with the assessee then under such circumstances it cannot be said that entries for the purchase of goods made in the books of account of the assessee were bogus and no addition in this respect can be made. The Ld. A.R. of the assessee has relied upon the decision of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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