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2018 (11) TMI 1655 - AT - Income TaxBogus purchases - addition on the basis of the statement recorded by the third party statement - CIT-A deleted the additional evidence - HELD THAT:- In the instant case, the purchases claimed by the assessee were not admitted by the AO on the ground that the notices issued u/s 133(6) of the Act remained un-served. Besides, the AO also observed that there was a search by the VAT Department of Mumbai in respect of the parties as discussed above, wherein it was admitted by the parties that they were engaged in providing accommodation entries to the parties. In this regard, we note that there was no material available with the Revenue other than the statement of the parties as discussed above evidencing that the assessee has made bogus purchases from the aforesaid parties. There was also no whisper and iota of evidence that the payment made in connection with the bogus purchases has come back to the assessee. There was also no allegation that the assessee has made purchases and sales outside the books of accounts. No addition can be made merely on the basis of the statement recorded by the third party statement i.e. Sales Tax Department of Mumbai in the case before us. We also note that the ld. DR at the time of hearing has not brought anything on record suggesting that the CIT(A) has admitted any additional documents in contravention to the provision of Rule 46A of the Income Tax Rule. - Decided in favour of assessee.
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