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2022 (11) TMI 406 - AT - Income TaxDisallowance of purchases - allegation of accommodation entry - supplier being non genuine dealer - HELD THAT:- Assessee has purchased M.S. plates from various dealers out of which M/s V3 Enterprises was alleged to be an accommodation entry provider. As evident from the record that the assessee has furnished the details of the suppliers along with their addresses and the price quoted for the materials purchased. The only contention of the department is that the alleged dealer’s name appeared in the website of sales tax department, Government of Maharashtra to be non genuine dealer. Apart from this, AO has not shown any corroborative evidences to prove that the said transaction is only a bogus transaction for the purpose of providing accommodation entry. The assessee, on the other hand, has proved the genuineness by furnishing the details of cheque, the bank account number, the invoices, delivery challans and other details evidencing the purchase of M.S. plates. The assessee has relied on the decision of DCIT vs Adinath Industries. [1999 (10) TMI 8 - GUJARAT HIGH COURT] which held that the assessee cannot be penalised for the action of supplier and that the assessee cannot be expected to know the commercial rationale on how this supplier operates its bank account which was considered by the Ld.CIT(A). CIT(A) has relied on the decision of the jurisdictional High Court in the case of CIT vs Nikunj Eximp Enterprises (P) Ltd [2013 (1) TMI 88 - BOMBAY HIGH COURT] on the ground that the assessee cannot be faulted if the seller is not traceable and also that it is not the burden of the assessee to investigate the genuineness of the seller or their business transaction. Respectfully following the above judicial precedent, we hold that there is no infirmity in the order of Ld.CIT(A). The grounds of appeal filed by the Revenue are dismissed.
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