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2017 (12) TMI 1254 - AT - Income TaxBogus purchases - ingenuity of claim - Held that:- In the present case, it is noticed that the AO doubted the purchases made by the assessee from M/s Parshanath Enterprises only on the basis of statement of one Sh. Mukesh Mangla. However, it is not brought on record, in which capacity Sh. Mukesh Mangla has given statement when Sh. Sachin Jain was the proprietor of M/s Parshanath Enterprises. The assessee furnished the copy of ledger account of the assessee in the books of M/s Parshanath Enterprises and also filed confirmation as well as its bank account alongwith copy of ITR of the proprietor of M/s Parshanath Enterprises. The AO did not make any inquiry from the proprietor of M/s Parshanath Enterprises. It is also not in dispute that the sales made by the assessee from the purchases under consideration and the gross profit rate has been accepted then there was no reason to consider the purchases as bogus purchases. In that view of the matter, the addition sustained by the ld. CIT(A)is deleted. Addition on account of commission on bogus purchases u/s 69C - Held that:- Since, the addition made by the AO considering the purchase as bogus has been deleted in the former part of this order. Therefore, the impugned addition is also deleted being co- related with the said purchases. Addition on account of capital introduced by Sh. Rishi Sachdeva, the partner in the assessee firm - Held that:- The amount in question was deposited by the partner as his capital, therefore, even if the Assessing Officer was not satisfied with the explanation of the assessee, it cannot be added in the hands of the assessee firm. At the most it cannot be considered in the hands of the individual partner of the assessee firm.Therefore, considering the totality of the facts, as discussed herein above, am of the view that the learned CIT(A) was not justified in confirming the addition made by the Assessing Officer on account of capital contributed by the partner in the assessee firm. Assessee appeal allowed.
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