TMI Blog2015 (7) TMI 435X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessment through post, a copy of which is available on record, interestingly, telephone number was conspicuously absent this time from the letter pad of this party. All these facts lead to the only irresistible conclusion that the Invoices recorded by the assessee in its books of account were fake and bogus. It is the excess price shown, which should be added rather than the invoice value itself. When we consider the overall gross profit rate of the assessee, it comes to the fore that the current year’s GP rate at 3.96% dipped from the preceding year’s gross profit rate of 4.41%. In the absence of any independent reasons to justify decline in the GP rate, it is such reduction in the profit, which was sought to be achieved by over-i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s. To ascertain the genuineness of these purchase transactions, the AO issued summons u/s 131 of the Incometax Act, 1961 (hereinafter called the Act ) on M/s Ankit Electronics for personal attendance along with books of account. The summons were received back with the postal remarks to the effect that no person by that name exists on the given address. Vide order sheet entry dated 23.11.2009, the assessee was asked to produce the partner/proprietor of M/s Ankit Electronics along with their books of account. The assessee submitted that the invoices were issued by M/s Ankit Electronics along with Transit passes (F-3) issued by Sales-tax Department, Ghaziabad. It was also stated that the purchases made from M/s Ankit Electronics were only 2.5 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it belonged to M/s Cipla Industries and not to M/s Ankit Electronics. Considering all these facts, the AO held the purchases amounting to ₹ 15.34 lac as bogus and made addition for the above sum. The ld. CIT(A) sustained the addition. The assessee is aggrieved against this addition. 4. We have heard the rival submissions and perused the relevant material on record. There is no denial of the fact that the assessee miserably failed to show that these invoices were in any manner genuine. All the inquiries conducted by the AO amply proved that the assessee dejectedly failed to either produce any representative of this concern or substantiate its identity. Summons issued on the given address divulged that this party never existed at th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n this score. However, we find that the position obtaining in this case is quite at variance. It is manifest from the audit report of the assessee that no stock registers were maintained. The auditor has qualified his report by giving remarks against column no. 28(a): It is not possible to verify the stock since firm is trading in number of small items. From the audit report, it is clear that the assessee did not maintain any stock register. It can also be noticed from the assessment order/proceedings that no stock register was produced before the AO. It is only during the course of first appellate proceedings that the assessee came out with some stock register to substantiate its claim of genuineness of purchase transaction. Since the as ..... X X X X Extracts X X X X X X X X Extracts X X X X
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