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2017 (5) TMI 426 - ITAT MUMBAIAddition on bogus purchases - addition made merely relying on information obtained from the Sales Tax Department, the statements / affidavits of third parties - Held that:- A.O. failed to cause any enquiry to be made to establish his suspicions that the said purchases are bogus, the assessee has brought on record documentary evidences to establish the genuineness of the said purchase transactions, transactions, the action of the A.O. in brushing aside these evidences cannot be accepted. Further in the case of CIT vs Ashish International (2011 (2) TMI 1506 - BOMBAY HIGH COURT) has held that the genuineness of the statements relied upon by Revenue is not established when the assessee disputes the correctness thereof and has not been afforded opportunity to cross examine these parties. Moreover, when the payments for the said purchases to the said 12 persons is through proper banking channels and there is no evidence brought on record by the A.O. to establish that the said payments were routed back to the assessee, the addition made by the A.O. is unsustainable. - Decided in favour of assessee.
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