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TMI Blog2021 (12) TMI 21X X X X Extracts X X X X X X X X Extracts X X X X ..... phs of the functions and promotional activities and confirmations from the shop keepers. What really tilted the opinion of ITAT in favour of respondent is that respondent had produced copies of bank statements of Punjab National Bank and Axis Bank evidencing the payments through banking channels by account payee cheques to the suppliers. Nothing in the order of the AO that the Assessing Officer has looked into or considered this fact dispassionately. The ITAT, therefore, came to a conclusion that respondent has discharged its onus by producing the books of accounts, stock register, stock tally and also filed various documentary evidences such as statements of banks. According to ITAT, once respondent has discharged this burden, the onus ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . P.C. : INCOME TAX APPEAL NO.1418 OF 2017 1. This is an appeal in which appellant proposes the following three substantial questions of law : 6.1 Whether on the facts and circumstances of the case and in law, the Hon ble ITAT was justified in deleting the addition of ₹ 4,92,43,370/- made on account of bogus purchases on the basis of self serving documents produced by the assessee without appreciating the fact that these alleged suppliers were non-existent at the addresses, not engaged in genuine business activities suppliers were declared as hawala dealers by the Maharashtra Sales-tax Department on the basis of on the spot enquiries conducted and statements recorded on various parties? 6.2 Whether on the fa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ppeal was only partly allowed because the addition by the Assessing Officer on account of alleged bogus purchases was confirmed by the CIT(A). Respondent impugned this order of CIT(A) before the Income Tax Appellate Tribunal (ITAT). To the extent CIT(A) had allowed the appeal, Revenue preferred an appeal before ITAT. ITAT dismissed Revenue s appeal and allowed respondent s appeal. The ITAT relied on a judgment of the co-ordinate bench of the ITAT in the case of M/s. MPIL Steel Structure Limited V/s. DCIT (ITA No.6602/Mum/2014) for Assessment Year 2011-2012, wherein similar issue was involved and deleted the addition towards bogus purchases. Unhappy with the conclusions of the ITAT, this appeal has been preferred. 3. We are inclined to ag ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... out delivery of goods. In the assessment order, it is also stated that the said hawala bill provider has categorically admitted during deposition before the sales tax authorities that these bills are provided just for the sake of entry and as such no materials were supplied by them and that they had only supplied bills on receipt of cheques and later on cash withdrawn from the banks and after deduction of agreed commission balance money was returned in cash. The Assessing Officer says his statement is available on website and same is treated as an evidence to justify the issue involved in the case. It is also stated by the Assessing Officer that the notice issued to these three parties under Section 133 (6) of the Act remained unserved beca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arious documentary evidences such as statements of banks. According to ITAT, once respondent has discharged this burden, the onus shifts to the Revenue and the Assessing Officer has not conducted any independent inquiry or further verification of the records produced before him. We have to note that this view of ITAT has not even been challenged and no substantial question of law has been proposed. 5. On the Assessing Officer s conclusions, we also observed that admittedly the three parties are private limited companies. The Assessing Officer does not mention anywhere to which address the notice under Section 133 (6) of the Act was sent because being a company, certainly the records in the office of the Ministry of Corporate Affairs or t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... report of the Inspector dated 26th February 2014, it is noted that the address of one party was found locked and the other party was not traceable, the address was not correct and the said party was not operating from the said premises. It would still not help the case of the Revenue because it it not clear from the Assessing Officer whether the two addresses were the registered office address and on what day of the week the Inspector went to serve and whether it was a holiday or a working day and just because the office premises was locked or a party was not available at the time the Inspector visited the particular address does not mean those parties were not carrying on business or non existent or bogus parties. We say this because even ..... X X X X Extracts X X X X X X X X Extracts X X X X
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