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2019 (11) TMI 708 - AT - Income TaxAssessment u/s 153A - assessee obtained accommodation purchase bills of high magnitude so as to evade taxes which stood corroborated by the statements of various suppliers / associated persons as recorded u/s 132(4) - HELD THAT:- We are unable to subscribe to approach adopted by first appellate authority in deleting the impugned additions. It is noted that the additions were deleted merely on the basis of remand report that no incriminating material was found during the search operations overlooking the fact that computer back up was seized during the search operation along with incriminating material. Nothing has been brought on record regarding the content of the seized material which would corroborate the findings that no incriminating material was found for the year under consideration. Search proceedings were triggered against the assessee in the background of the fact that the assessee obtained accommodation purchase bills of high magnitude so as to evade taxes which stood corroborated by the statements of various suppliers / associated persons as recorded u/s 132(4) on the date of search. Nothing on record would suggest that any of such statement was ever retracted by any one of them subsequently and therefore, these statements, in our considered opinion, had substantial evidentiary value and the onus was squarely on assessee to prove that the transactions were genuine. No such onus was ever discharged by the assessee. Assessee failed to produce books of accounts and file requisite documentary evidences at the time of search proceedings, assessment proceedings as well as during appellate proceedings and merely harped on the point that no incriminating material was found in the search proceedings. The incriminating material was always to be seen with reference to the books of account being maintained by the assessee and the books of accounts were never produced. The findings of AO that few bank accounts were not even reflected in the financial statement, would also assume importance, in this regard. Director of the assessee company, in statement u/s 132(4), sought time to furnish requisite information / documentary evidences to prove the genuineness of the transactions but failed to produce the same also could not refute the allegations that it obtained bogus bills from various suppliers. Therefore, we are unable to subscribe to the approach adopted by learned first appellate authority. Hence, we deem it fit to setaside the order of learned first appellate authority and restore the matter back to Ld. CIT(A) for appreciation of factual matrix in the light of investigation being carried out by Ld. AO and re-adjudicate the same in accordance with law. The assessee, in turn, is directed to substantiate its claim that no additions would be warranted for the year under consideration.
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