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2014 (9) TMI 549 - HC - Income TaxGenuineness of purchases - Whether the liabilities/purchase pertaining to M/s Gopal Enterprises is genuine – Held that:- Sri Ram Gopal Sharma, proprietor of M/s Gopal Enterprises stated that he made the purchases from the local market without any bill - He was not having any vouchers - from last one year, he is not doing any business and only for the year 2007-08 he had received a payment of ₹ 7,50,000 - He has nothing to do with the business of the assessee, so the liability shown to the assessee for ₹ 31,18,137/- is not connected with him - he clearly stated that no money is due on the assessee - Sri Ram Gopal Sharma is doing independent business - He is running a dummy business - He is a proprietor of a firm which is not functioning for the last one year - the AO rightly rejected the books of account and made the additions on estimate basis - jugglery of book entries has been played - Both the orders of AO appears reasonable, where he has rightly made the additions pertaining to the bogus purchases – the order of the Tribunal is set aside – Decided in favour of revenue.
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