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2013 (5) TMI 474 - AT - Income TaxUnexplained expenditure u/s.69C - Notices u/s.133(6) - Held that:- Clearly, if the goods stand transported as well as processed by third parties, with even duty having been paid on such processing, it cannot be said that no goods at all have been purchased. Further, as regards the 'fact' of sale, the same would become material only if the assessee could, with reference to its stock register or any other record, exhibit that the goods so purchased were either sold during the relevant year itself or, being unsold, stand included in the closing stock. It is only in either of these two situations, it may be appreciated, that a claim for purchase could be validly made. This matter, which we consider as relevant, though arising out of the record, has not investigated or examined by the authorities below. In view of the foregoing, it is fit and proper that the matter is restored back to the file of the FAA for the purpose. The onus, there is no gainsaying, to establish its claims, would only be on the assessee & adverting to the decision of Kachwala Gems vs. JCIT [2006 (12) TMI 83 - SUPREME COURT] whereat it approved of best judgment assessment where the purchases could not proved by the assessee beyond doubt. Qua difference in the amount of purchases, resulting in a disallowance of Rs.2.39 lakhs - Held that:- When the assessee's accounts are considered as incorrect on the basis of the accounts of the corresponding party, the same becomes a material with the Revenue on the basis of which the assessee's books of account are being impugned by it. It was, therefore, incumbent on the Revenue to provide the assessee the same, which it has failed to, despite, repeated requests by the assessee for the same, as gathered from the statement of facts, as filed both during the course of proceedings in the first and the second round, as well as the arguments made before us - this issue is also likewise restore back to decide the same afresh.
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