TMI Blog2014 (8) TMI 1005X X X X Extracts X X X X X X X X Extracts X X X X ..... . Without purchases there cannot be any sales. The entire additions made by the AO are based on assumptions and presumptions. We, therefore, decline to interfere with the findings of the Ld. CIT(A). - Decided against revenue - I.T.A. No.6735/Mum/2010 - - - Dated:- 8-8-2014 - SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER AND SHRI SANJAY GARG, JUICIAL MEMBER For the Appellant: Shri M. Murali For the Respondent: Shri Aarti Visanji O R D E R PER N.K. BILLAIYA, AM: This appeal by the Revenue is preferred against the order of the Ld. CIT(A)-20, Mumbai dt. 26.7.2010 pertaining to A.Y.2006-07. 2. The grievances of the Revenue read as under: 1. On the facts and in the circumstances of the case and in law, the Ld. CIT( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... claim of purchase from M/s. Zalak Impex aggregating to ₹ 1,27,38,022/-. 3.1. The assessee submitted the details of cut and polished diamonds exported during the year. It was also pointed out to the AO that the purchases made from M/s. Zalak Impex were sold to M/s. Adin International Inc, sale bills were also submitted. The AO did not accept the submission and the details filed by the assessee. The AO observed that the assessee is well aware of the fact that its purchases are bogus in nature. The AO further noticed that the assessee was engaged in obtaining bogus purchase bills in earlier year also. The AO completed the assessment proceedings by making additions on account of bogus purchases at ₹ 1,27,98,022/. 4. The assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Ld. Departmental Representative supported the findings of the AO. 7. The Ld. Counsel for the assessee reiterative what has been submitted before the lower authorities. 8. We have carefully perused the orders of the authorities below and the relevant material evidences brought on record before us. The undisputed facts are that the purchases were supported by bills, the payments were made by account payee cheque and the payments were duly reflected in the bank statement of the assessee. A perusal of the statement of the diamond traded during the year under consideration shows that the assessee purchased 1358.54 carats from M/s. Zalak Impex on 1.8.2005, the same was exported on 5.8.2005 and 871.57 carats were purchased on 2.8.2005 from M ..... X X X X Extracts X X X X X X X X Extracts X X X X
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