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2018 (1) TMI 713 - AT - Income TaxValidity of the reassessment proceedings - information received from the Sales Tax department that the assessee had only taken accommodation bills and not carried out any genuine purchases - Held that:- We are of the considered view that now when it was the claim of the assessee that it had made purchases from the aforesaid parties and had claimed the same as an expense while computing its income, therefore, it was for him to establish the genuineness of the same to the satisfaction of the A.O. We are of the considered view that in the backdrop of the facts emerging from the record, viz. (i). the notices sent by the A.O to the parties were returned unserved by the postal authorities; (ii). neither of the aforesaid parties were produced for examination before the A.O; and (iii). the purchase bills unlike genuine bills did not mention of the mode of delivery (transport), the veracity of the information received from the Sales Tax department that the assessee had only taken accommodation bills and not carried out any genuine purchases further stood fortified. We thus in the backdrop of the view taken in the case of Simit P. Sheth (2013 (10) TMI 1028 - GUJARAT HIGH COURT), keeping in view the fact that the assessee had mainly purchased acids or corrugated boxes from the aforementioned parties, on which the VAT rates during the year under consideration, viz. F.Y. 2008-09 was 4% and 5%, respectively, therefore, keeping in view certain other monetary benefits which the assessee would had made from making such purchases, therefore, restrict the addition in the hands of the assessee to the extent of 6% of purchases of ₹ 29,81,640/-. We thus restrict the addition in the hands of the assessee to ₹ 1,78,900/- [i.e 6% of ₹ 29,81,640/-]. The order of the CIT(A) is thus modified to the said extent. - Decided partly in favour of assessee.
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