TMI Blog2017 (3) TMI 133X X X X Extracts X X X X X X X X Extracts X X X X ..... the Sales Tax Department, GOM. In our opinion the assessee has discharged the onus cast upon it and now the burden shifts to the revenue to disprove the contentions of the assessee by carrying out further inquiries which was not done in the present case. Moreover, the assessee was not confronted with the statements recorded by the VAT department of GOM from the hawala dealers which itself is in violation of principle of natural justice. AO has wrongly made addition on account of bogus purchase from the hawala parties. We are therefore not in agreement with the conclusion drawn by the FAA that the suppressed GP/NP being more than the hawala purchases for sustaining the additions. Accordingly we set aside the order of CIT(A) and direct th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2,15,373 2 M/s Deep Enterprises 277505955164V 2009-10 Rs.85,936/- 3 M/s Amar Enterprises 27770524440V 2009-10 Rs.1,16,448 4 M/s Leo Impex 27230614753V 2009-10 Rs.1,94,504 Thereafter, the AO issued notice under section 148 on 20.3.2013 which was served upon the assessee and was compiled with by the assessee by filing reply dated 29.3.2013, requesting the AO that the return of income filed on 24.9.2009 be treated as return of income filed in response to notice u/s 148 of the A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Gross Profit in amount GP in % Net profit NP ratio 200708 7205105 3342510 46.39 NA NA 2008-09 18175117 7735031 42.56 2401364 13.21 2009-10 16922696 5866010 34.66 647357 3.83 2010-11 20025407 9534451 47.61 1816148 9.07 2011-12 28289308 10116545 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nsive inquiry to find out the truth and went ahead by disbelieving the purchases by ignoring the relevant facts as the payments of purchases were made through banking channel and purchased material were consumed for manufacturing of pharmaceutical instruments and which were eventually sold. The act of the FAA in upholding the order of the AO was nothing but based on conjecture, surmises and presumptions which was not permissible in law. The ld. AR argued that the purchases made by the assessee which went into manufacturing process could not be treated as bogus only on the basis of fact that the purchases made from the parties were listed on the website of Sales Tax Department, GOM as hawala dealers. Moreover, the assessee was confronted wit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Sales Tax Department that the assessee was one of the beneficiary of these entries. We find that during the course of assessment proceedings, the assessee filed a copy of ledger account, purchase bills, delivery challans, proof of payments through banking channels and stock tally which proved beyond doubt that the assessee has received materials which were consumed in manufacturing process of pharmaceuticals and the AO did not point out any defects or deficiency in the books of account except basing his conclusion qua bogus purchase on the basis of information received from the Sales Tax Department, GOM. In our opinion the assessee has discharged the onus cast upon it and now the burden shifts to the revenue to disprove the contentions o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ax Department of the Government of Maharashtra. Ostensibly, the Assessing Officer ought to have brought on record material which is relevant to the transactions of the assessee with the aforesaid four parties instead of making a general observation about the information received from the Sales Tax Department of the Government of Maharashtra. Quite clearly, the Assessing Officer as well as CIT(Appeals) have taken note of the fact that no sales could have been effected by the assessee without purchases. In the present case, assessee has explained that all its sales are by way of exports. The books of account maintained by the assessee show payment for effecting such purchases by account payee cheques and also the vouchers for sale and purchas ..... X X X X Extracts X X X X X X X X Extracts X X X X
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