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2017 (7) TMI 1431 - AT - Income TaxBogus purchases - Addition of hawala purchases - HELD THAT:- In the facts of the case, the assessee had tried to meet the case of AO and hence, the onus shifted upon the AO to disprove the claim of assessee. AO has failed to discharge the onus in this regard. AO has failed to complete the investigation in the case. In view of the affidavits / confirmation letters filed by the assessee, no further enquiries were made in the present set of facts. In the absence of the same and where the assessee has tried to built upon its case and has also shown the trail of goods i.e. as against the booking of sales, it had made the purchases and in this regard has complete quantitative records available with him, then the onus cast upon the assessee stands discharged once the same is produced before the authorities below. Where the assessee has discharged the onus of proving the factum of making purchases from the respective parties by way of filing affidavits and also establishing the trail of goods, in turn, relying on the stock details maintained by him, there is no merit in holding the said purchases to be bogus. The statements of bogus suppliers were relied upon without giving an opportunity to cross-examine the said parties to the assessee. It is case of trader, where admittedly, the assessee was engaged in the sale of industrial oil and only against the confirmed orders, it was making said purchases; then the assessee has discharged the onus cast upon him and in the absence of any contrary evidence being brought on record, mere reliance on the investigation carried out by the Sales Tax Department does not warrant any addition in the hands of assessee. Accordingly, we hold so. Thus, we direct the AO to delete the addition on account of bogus purchases. The grounds of appeal raised by the assessee are thus, allowed and the grounds of appeal raised by the Revenue are dismissed.
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