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TMI Blog2012 (7) TMI 219X X X X Extracts X X X X X X X X Extracts X X X X ..... (Appeals-II), vide order dated 23.11.1995, had set aside the said finding of the assessing authority by holding that the purchases claimed by the respondent from these parties were not bogus. Accordingly the Commissioner deleted the addition of Rs. 84,25,342/- made by the assessing authority on this account. The Income Tax Appellate Tribunal, vide order dated 27.11.2009, has affirmed the finding of the Commissioner. 2. Learned counsel appearing for the appellant submitted that the Tribunal has committed an error in taking the view that the purchases made by the respondent from the aforesaid parties were not bogus. He further submitted that the tribunal is not right in holding that the assessee was not required to prove the source of purcha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e next record may read as OO or DO or DD for the simple reason that the first person might have written the two alphabets in a near similar fashion. Therefore, no adverse inference can be derived only for the reason of discrepancy in the vehicle numbers. The fact remains that the appellant has been showing purchases from the three concerns and total purchases made in the two Units from three concerns in the present assessment year is found to be as under :- Name of the Party Amount of total purchases (1) M/s Nilesh Traders Rs. 1,05,83,000/- (2) M/s Garg Traders Rs. 2,07,06,981/- (3) M/s M.M. General Merchants Rs. 56,71,226/- Thus as against purchases of nearly 3.70 Crores, th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... basis of which final purchase price is determined and payments are made. The appellant can only be asked to prove the identity of the seller and once such identity is established by producing all such persons before the Department, the appellant should not have been questioned in case it was found that there is some discrepancy in the record of these three concerns in relation with the fact of purchases made by them as also in relation with withdrawal of the cash amount from the bank immediately after sale realisation, and adverse action if any can be taken only against Shri Bharat Modi and family members or against these three traders, but certainly not the appellant company, who has shown to have made purchases from the persons of establi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has rightly noted that the production of the assessee and the sales have not been doubted. The payments were made by the respondent to the concerned parties through cheque and the delivery of goods was duly taken from the concerned traders. It was also noted that the assessee had adopted the proper procedure for receiving the goods supported by the gate-pass and goods were subject to lab testing, weighment etc. and they were duly recorded in the stock register. The payments were made by account payee cheque which were deposited in the Bank. 6. Learned counsel appearing for the appellant could not point out any perversity in the finding which have been recorded by the Commissioner as well as the Tribunal. Thus the issue which the appellant ..... X X X X Extracts X X X X X X X X Extracts X X X X
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