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TMI Blog2017 (10) TMI 165X X X X Extracts X X X X X X X X Extracts X X X X ..... sustaining the reopening of assessment u/s.147 of the Act and also sustaining the addition made by the Assessing Officer towards bogus purchases at 12.5% of the purchases made from M/s. Foram Traders/Apple Industries and M/s. VSK Enterprises. 3. In so far as the reopening of assessments u/s.147 is concerned, the Learned Counsel for the assessee submits that assessments were reopened merely relying on the information received from the Maharashtra Sales Tax Department without giving copy of the statement of suppliers recorded and without providing the fact that reopening was made in the absence of proof of the amounts paid to the dealers was returned to the assessee. Therefore, it was contended that the reopening of assessments is bad in law ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Enterprises from whom the assessee made purchases are providing only accommodation entries without delivery of goods. The Assessing Officer issued notices u/s. 133(6) of the Act to the said dealers and the notices were duly served. However, no replies have been received from the said dealers. Therefore, the assessee was required to prove the genuineness of the purchases made from these two parties along with the necessary details. Assessee furnished copy of the ledger account with copies of purchased invoices, delivery challans, affidavits from M/s. Foram Traders/Apple Industries and M/s. VSK Enterprises confirming sales to the assessee. However, the Assessing Officer disbelieving the affidavits filed by the assessee and stating that the af ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... delivery of goods is also clearly mentioned on the delivery challans. Therefore, the purchases made by the assessee cannot be treated as non-genuine. 8. Learned Counsel for the assessee further submits that the statements said to have been recorded from the dealers by the Sales Tax Department (Investigation Wing) have not been supplied to the assessee for rebuttal and there was no cross examination provided to the assessee. The Learned Counsel for the assessee submits that the addition made towards bogus purchases is based only on the Sales Tax Department information and no other evidence was brought on record to suggest that the purchases made by the assessee were non-genuine. He further submitted that the assessee is only into wholesale ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... parties before the Assessing Officer as required by him. Therefore, the Assessing Officer disbelieving the affidavits filed by the dealers estimated the profit element at 12.5% relying on the decision of the Hon'ble Gujarat High Court in the case of CIT v. Simit P. Seth (supra) and Bholanath Polyfab Pvt. Ltd. (supra) and brought to tax. Ld.CIT(A) sustained the addition. 11. We find from the materials placed before us that the purchases were supported by the delivery challans and the place of delivery also mentioned on the delivery challans by the supplier. The Assessing Officer did not disbelieve the delivery of goods from the dealers. However, he was of the opinion that the assessee has obtained only bills from these dealers and asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee could not produce the purchase bills, transport receipts, details of Octroi Payment, details of goods receipt note and details of storage of goods. Assessee is a whole sale trader of paper and iron and it is not a manufacturer. Therefore, taking the totality of facts and circumstances into consideration we are of considered view that the matter has to be examined thoroughly by the Assessing Officer afresh in the light of the confirmations filed by the dealers supporting the sales made by them to the assessee. Thus, this matter is restored to the file of the Assessing Officer for denovo adjudication in accordance with law after obtaining necessary information from the assessee. The assessee shall provide all the details including t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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