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2015 (10) TMI 740 - AT - Income TaxBogus purchases - not providing opportunity of cross examination of the persons whose statements have been used against the assessee - Held that:- This Bench of ITAT has taken decision to apply 15% net profit rate on unverifiable purchases in the cases of Anuj Kumar Varshney and others vs. ITO (2015 (4) TMI 533 - ITAT JAIPUR). However, assessee's request is accepted and the AO is directed to reframe assessment order by considering outcome on this issue as appeal in case of un-verifiable purchases/ bogus purchases is pending before Hon'ble Rajasthan High Court. As regards the first ground of the assessee for not providing opportunity of cross examination, we find that this issue has not been seriously argued by the ld. AR of the assessee. However, the Bench has offered to allow cross examination by setting aside the orders of the lower authorities. The facts as available on records that the assessee was directed to produce the parties for verification by the AO but the assessee showed inability to produce the parties. The AO sent his Circle Inspector to verify the facts about the existence of the parties but they were not found at the given addresses. Therefore, the assessee has not discharged its onus to prove the purchases debited in profit and loss account as genuine and the assessee has not shifted his onus on the Revenue - Decided against assessee.
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