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2018 (5) TMI 1933 - AT - Income TaxAddition u/s 69C - assessee failed to discharge the primary onus to establish the genuineness of purchases from these concerns - HELD THAT:- AO asked the assessee to produce the these parties alongwith the books of accounts in order to prove the genuineness and verification of the transactions made. The assessee failed to do so. The notices sent by the AO to these concerns M/s. Ankit Exports, Mumbai and M/s. Natasha Enterprises, Mumbai were returned back unserved. The assessee could not prove the genuineness of the purchases made from M/s. Ankit Exports, Mumbai and M/s. Natasha Enterprises, Mumbai. The assessee failed to discharge the primary onus to establish the genuineness of purchases from these concerns. The assessee could not prove the genuineness of the purchases. AO made the addition of ₹ 52,36,462/- (i.e. 25% of the total purchases of ₹ 2,09,45,850/-). CIT(A) has restricted the disallowance to the extent of 15% in view of the decision of ITAT Jaipur bench in the case of Shri Anuj Kumar Varshney vs ITO and others [2015 (4) TMI 533 - ITAT JAIPUR].Since the ITAT, Jaipur Bench has already taken the decision of confirming the addition of 15% on unverifiable purchases in the similar line of cases, therefore, we concur with the findings of the ld. CIT(A). Thus the Ground No. 1 & 2 of the assessee are dismissed. Bogus purchases - AO initiated the proceedings u/s 147/148 - HELD THAT:- Assessee is engaged in the business of gold and diamond jewellery. The AO had information in his possession that the assessee had taken accommodation entries from Shri Praveen Kumar Jain group who himself admitted in his statement recorded u/s 132(4) of the Act that he is providing accommodation entries for commission. He was issuing bogus invoices to the needy parties on commission basis. The assessee had made purchases from two concerns namely M/s. Ankit Exports, Mumbai and M/s. Natasha Enterprises, Mumbai, controlled and managed by Shri Jain. AO had sufficient reason to believe that the income had escaped assessment as the assessee had not disclosed all the material facts fully and truly necessary for assessment. The earlier the assessment was made u/s 143(3) however, the fact about the bogus purchases from the concerns controlled by Shri Jain was not disclosed by the assessee during assessment proceeding. The fresh information was received by the AO and the AO initiated the proceedings u/s 147/148. Thus, it is not the case of change of opinion as the assessment was reopened on the basis of fresh information received with regard to bogus purchases. Assessee has not disclosed truly and fully all materials facts which were necessary for determining the true and correct income of the assessee. During the course of hearing, it is also noted that the assessee could not controvert the findings of the CIT(A). - Decided in favour of assessee.
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