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2017 (12) TMI 195 - ITAT DELHIUndisclosed income - bogus sale purchase transactions - providing accommodation entries - Held that:- In the present case the sales recorded by the assessee has been shown in the disguised manner as regular income of the assessee whereas it is not so, because the assessee has failed to prove the purchases of the goods. On looking at the whole transaction, it is apparent that assessee is showing sales to some parties to suit their convenience without recovering money from them and in fact they are showing the amount due to assessee company as loans and advances. Therefore, it amounts to providing an accommodation entry to those parties as loans and advances in the guise of purchases booked by them. Though it is not the case of reopening but assessment, hence the higher burden lies on the assessee to prove genuineness of purchase and sales - merely because the purchases and sales have been shown in the books of accounts when they are shrouded with the non-genuineness does not help the assessee. It is a revelation that company without having any substances has got the outstanding credit of ₹ 35 crores for purchases. As a final fact finding authority we cannot close our eyes to the startling facts reveled before us. The ld AR has objected to the report of the ld AO placed before us wherein the transactions of the assessee were detailed for last three years. We do not hesitate to reject the objection of the assessee. In fact the report of the Ld AO has demonstrated the modus operandi of the assessee company prevailing for consecutive three years. Matter remanded back to AO - the ld. AO may examine the whole trail of these transactions of purchase and sales and find out the real beneficiaries of all these unusual transactions of purchase and sales entered by assessee without flow of consideration. Appeal of the revenue is allowed for statistical purposes.
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