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2016 (3) TMI 908 - AT - Income TaxAddition u/s 69C - Held that:- The 5 parties should be treated differently as these parties are undisputedly the non-suppliers of the raw materials needed for the contracts. It is evident from the fact that assessee itself offered such claims as unaccounted ones in the past. We cannot appreciate as to how these 5 parties, who do not have the capacity to supply the raw material, have got capacity to supply the same in the year under consideration. considering the background of the purchases from these parties, the onus is on the assessee to demonstrate that the purchases amounting to Rs ₹ 12,01,91,407/- are genuine and not the unexplained ones. CIT (A) is directed to adjudicate this issue of addition of ₹ 1,00,86,929/- made u/s 69C of the Act afresh. It was separately made by the AO by giving reasoning and by passing a speaking order on this issue, whereas the CIT (A) treated the same on par with other suppliers In summary, we are of the opinion, considering the orders of the Tribunal in many cases of additions involving the Sales Tax Department, the disclosure of blacklisted suppliers and when the Assessing Officer failed to discharge the onus as discussed above, the additions made u/s 69C amounting to ₹ 12,01,91,407/- out of total addition of ₹ 13.03 Crs is required to be deleted. CIT (A) is directed to examine this issue and pass a speaking order on the issues relating to the aspects of GP and the other independent addition of ₹ 1,00,86,929/- after gathering relevant facts from the survey statements, if any. CIT (A) shall grant a reasonable opportunity of being heard to the assessee as per the set principles of natural justice.
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