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2013 (11) TMI 1364 - AT - Income TaxBogus purchases - Additions u/s 69C of the Income Tax Act on account of bogus purchases – Held that:- Commissioner(A) in its order observed that as far as the purchases of raw-material are concerned, they are genuine but it is likely that the bills in respect of those purchases have been purchased from the market - Linkage of these purchases with the sale is not ascertainable because the purchases of raw- material has undergone the various processes before its sale as a finished products. The raw-material and finished goods have different entity and cannot have direct link - But its purchase and sales have been accepted by the Excise and Trade Tax Department. The other evidences such as, the freight receipts for bringing the goods inside the factory by citing the vehicle number etc., their entry in the stock register, purchases against For No. ST- 38 issued by Excise and Trade Department of Haryanas and subsequent assessment by Excise and Trade Department of the purchases and sale of the assessee company are the evidences which cannot be ignored. These evidences have clearly shown the authenticity of the purchases - In the assessment of the main companies of the assessee where huge purchases were made, no adverse view has been taken by the Assessing Officer and by Commissioner of Income-tax (Appeal). In the present case the purchase as compared to the other group companies are negligible. It is also a fact that the existence of the vendor party which has sold the goods to the assessee company is doubtful and appeared to have been issued the accommodation entries only but this fact stands alone cannot make the purchase bogus. Relying upon the judgment in the case of DCIT vs. Global Business India Pvt. Ltd. [2013 (9) TMI 362 - ITAT DELHI] on an identical issue under almost similar facts, it is held no infirmity has been found in the order of Commissioner(A) and purchases are held to be genuine – Decided against the Revenue.
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