2017 (11) TMI 1906

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..... to be bogus by the Sales Tax Department. AO asked the assessee to submit the details, to prove the genuineness of the above purchase transaction. By submitting following details, the assessee had also discharged his primary onus of proving genuineness of transaction. (i) Ledger copy of Purchases parties in consideration. Showing purchases, payments and balance at the end of the year. (ii) Copies of Purchase Bills. (iii) Copy of Bank statement showing payment of purchases made by account payee cheques. (iv) Purchase-sales tally sheet. (v) Stock register showing all transaction of purchase-sales and stock of quantity of goods. (vi) Income Tax Audit Report. (vii) VAT Audit Report showing all purchases-sales with their TIN Number. .....

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..... shown VAT Amount which is duly paid by assessee to supplier. 10. There is no evidence than cash received back by assessee. 11. If some suppliers have small place of business than it cannot assumed that assessee did hawala transaction 8. Reliance was also placed on the judicial pronouncements placed in the paper book for deleting the addition made on account of purchases, when the assessee has shown substantial GP. 9. On the other hand, learned DR relied on the order of the AO and contended that all the suppliers were found to be bogus by the Sales Tax ITA No.3322/Mum/2017 Shri Sunil B Doshi Department, accordingly AO was justified in making 100% addition with respect to such purchases. 10. We have considered rival contentions and ca .....

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..... ent. This may be a good reason for making further investigation but the AO did not make any further investigation and merely completed the assessment on suspicion. Once the assessee has brought on record the details of payments by account payee cheque, it was incumbent on the AO to have verified the payment details from the bank of the assessee and also from the bank of the suppliers to verify whether there was any immediate cash withdrawal from their account. No such exercise has been done or findings recorded. There was no detailed investigation made by the AO himself. It is also found that the payments have been made by account payee cheque which are duly reflected in the bank statement of the assessee. There is no evidence to show that .....

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