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TMI Blog2015 (2) TMI 1412X X X X Extracts X X X X X X X X Extracts X X X X ..... supplier of paintings. It is also a matter of record that assessee has not claimed any expenditure in its profit and loss account with respect to cost of paintings. The source of fund from where payment was made is also not in dispute, insofar as payment was made out of credit balance in the bank account. The fact that paintings were found during the course of search indicated that paintings were actually purchased. Accordingly, we do not find any merit for adding the amount of paintings in the assessee s income when the source of funds for making such purchase was not in dispute, nor the physical form of paintings. Under these circumstances, the only inference which can be drawn is that the assessee might have purchased paintings from some ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rcantile Pvt. Ltd. M/s.Muni Trade Pvt. Ltd., Mr.Rashesh A Shah, Proprietor of M/s.Royal Trust Corporation, Shri Ashok Palan, Proprietor of M/s. Elegant Trading Company M/s.Mangala Corporation, Mr. Jesaran Prajapathi, Proprietor of M/s.Raj Enterprises, M/s.Oshwal Traders, M/s.Balaji Sales Corporation, M/s. Jyoti Enterprises, M/s.Marco Enterprises and Mr.Chetan M. Shah, Proprietor of M/s. Neelam Sales Corporation were enclosed as annexures with the assessment order. It is stated that all the persons denied having supplied any paintings to the assessee but admitted having received cheques on behalf of assessee which were deposited in their bank accounts and subsequently money was withdrawn and given to the person who has given the cheques, aft ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... intings were claimed in the return of income, therefore, no disallowance should be made. 6. On the other hand, the contention of ld. DR was that the parties from whom alleged paintings were purchased have clearly declined such transaction. Furthermore, one of the supplier was not found at the address given by the assessee. Accordingly, department was justified in treating such purchases as bogus. 7. We have considered rival contentions and carefully gone through the orders of the authorities below. We have also gone through the statement recorded by the AO from the supplier of paintings. It is evident from the record that assessee has claimed purchase of paintings by issue of account payee cheques. The paintings were also found during the c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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