TMI Blog2020 (11) TMI 697X X X X Extracts X X X X X X X X Extracts X X X X ..... revenue against different orders of the Learned Commissioner of Income Tax (Appeals) 26, Mumbai [hereinafter in short Ld.CIT(A) ] dated 27.02.2019 for the A.Ys., 2009-10, 2010-11 2011-12 in restricting the disallowance to 12.5% of purchases as against the entire purchases disallowed as non-genuine/bogus by the Assessing Officer. 2. Briefly stated the facts are that, the assessee engaged in the business trading in industrial tools and accessories like bearings belts, bits drills, filed return of income on 21.09.2009, 16.09.2010 and 24.09.2011 and declaring income of ₹.77,236/-, ₹.24,192/- ₹.1,41,979/- for the A.Y: 2009-10, A.Y. 2010-11 and A.Y.2011-12 respectively, and the returns were processed u/s. 143(1) of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ailed to prove the quantity of material in the bills used in the construction/contract activity. Assessing Officer observed that the notice issued u/s. 133(6) of the Act to the parties were returned unserved with a remark left/Not Known and the assessee did not produced the parties before the Assessing Officer. Therefore, Assessing Officer treated entire purchases of ₹.2,06,304/-, ₹.3,43,073/- ₹.2,60,603/- for the A.Y:2009-10, A.Y. 2010-11 and A.Y. 2011-12 respectively as non-genuine and added to the income of the assessee. On appeal the Ld.CIT(A) considering the evidences and various submissions of the assessee restricted the disallowance to an extent of 12.5% of the non-genuine purchases. 4. Ld. Counsel for the ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ever, the appellant could not produce the party before the AO inspite of opportunity being given. The appellant also failed to produce delivery challans or transportation details. The onus of proving the genuineness of such purchases is on the appellant which the appellant had not been able to discharge fully. When the hawala party had admitted on oath that it had given accommodation entries only without actually supplying the goods, the genuineness of purchases made from these parties will have to be considered taking this into consideration while examining the documentation submitted by the appellant in support of its claim. The documentary evidences such as purchase bills, payments by cheques, etc. would all have been orchestrated to pre ..... X X X X Extracts X X X X X X X X Extracts X X X X
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