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2016 (5) TMI 1380 - AT - Income TaxAddition on account of bogus purchases and labour charges - notice u/s. 133(6) could not be served on the parties in the address given by them - Held that:- The confirmations were filed in respect of all the 7 parties and income tax returns were filed in respect of 2 parties and copy of PAN card was also furnished in respect of 3 parties. Details of TDS deducted have also been provided. The appellant has discharged the initial onus of proving the genuineness of purchases and labour but the Assessing Officer never attempted to conduct any verification and he wanted everything to be filled by the appellant including information which were not available with the appellant. When the above details were filled by the appellant, the burden was shifted to the AO when the confirmations were filled and no addition could be made without proving that there was bogus purchases and income tax returns of purchase parties. Further, the appellant made payments by DD or account payee cheques. There is not a single cash payment to any of the purchase or labour party. Complete details have been filed regarding purchases and labour charges including name of the person in whose name the cheques were cleared, as seen from the bank statement of the appellant. It is further seen that on the cheques were cleared in the name of the parties to whom the payments were claimed to have been made. The AO without verifying such details, footed his conclusion only on Ward Inspector's Report which in itself seems to be done negligently without putting much efforts and application of mind. The AO's very basis for making the said additions is flawed and unsustainable. In the circumstances, there is no case for any such ad hoc disallowance. - Decided in favour of assessee.
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