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2022 (6) TMI 67 - AT - Income TaxBogus purchases - addition made towards entire bogus purchase - claim that only GP at the rate of 3.15% only is to be added as income in the hands of the assessee - HELD THAT:- There was categorical direction given to the assessee to produce three parties (brokers) before the AO to prove genuineness of the transaction and also cross-examine the parties. Pursuant to the direction, the AO has given four opportunities to prove the case, and also issued summons calling upon three parties before him; but notices were remained unanswered on the ground that postal authorities returned the same with remark "not known or un-sufficient address". When the assessee was requested to produce three parties, the assessee was unable to produce them, but only filed a letter. Assessee has not filed required evidences viz. return of income filed by the broker, bank statements and any other evidences before the Ld. AO. In the absence of the above details, the AO has confirmed the addition and treated the same as bogus purchase. Even during the appellate proceedings, the assessee could not be able to establish the same. From the reading of the assessment order, it is clear that the assessee was given opportunity to prove genuineness of the transaction even in the original assessment proceedings, which were completed on 24.12.2010. Further, the assessee pleaded before this Tribunal in the first round of appeal that he could not produce three parties as well as evidences before the AO. For this reason only, Co-ordinate Bench of this Tribunal had set aside the matter back to the file of the AO for one more opportunity. Now, the assessee simply claims that since the transactions were of more than ten years old, it could not produce three parties before the AO. Assessee has literally wasted precious time of the AO by once again issuing notices and summons to the third parties and at the end of the proceedings, the assessee expressed inability to prove before the AO the genuineness of the transactions. Thus, both the AO and the CIT(A) have given clear cut finding that the assessee could not able to prove the purchases as genuine, and therefore, grounds of appeal raised by the assessee in the written submissions are hereby rejected, and the appeal filed by the assessee are hereby dismissed. The orders passed by the lower authorities do not require any interference. - Appeal of assessee dismissed.
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