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2016 (4) TMI 347 - AT - Income TaxBogus purchases - addition made on the basis of Maharastra VAT authorities to the effect that assessee’s suppliers have issued bogus invoices without involving any actual delivery of goods - hawala dealers - Held that:- It emerges that he is mainly a suppliers of finished goods from purchasers to sellers without involving any stock being maintained at his behest. There is further no dispute that assessee’s sales in question corresponding to the impugned purchases already stand accepted. There is no issue that he has already placed on record all the relevant bills/vouchers, gate passes, delivery challans, proof of mode of payments and relevant confirmations on record in support of the purchases. Both the lower authorities doubt creditworthiness thereof without there being any rebut in all evidence except Maharastra VAT authorities information. The alleged hawala dealers have nowhere been allowed to be cross examined at any staged of the proceedings. Thus to conclude in these facts and circumstances that the CIT(A) has erred in confirming the impugned addition of bogus purchases, See Hiralal Chunilal Jain vs. ITO [2016 (1) TMI 1089 - ITAT MUMBAI], ACIT vs. Ramila P. Shah [2015 (3) TMI 1116 - ITAT MUMBAI] and DCIT vs. Rajiv Jee Kalathil (2014 (8) TMI 807 - ITAT MUMBAI) - Decided in favour of assessee
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