TMI Blog2015 (12) TMI 1850X X X X Extracts X X X X X X X X Extracts X X X X ..... e goods to the assessee for free or that the assessee has booked a bogus expenditure. When it is not so, solely on the basis of unconfronted and general statements of alleged suppliers made before sales tax authorities, addition u/s 69C under the circumstances on account of purchases are not warranted at all. Assessee has relied upon the decision of Nikunj Enterprises (P.) Ltd. [ 2013 (1) TMI 88 - BOMBAY HIGH COURT] wherein the Hon ble Bombay High Court has upheld the findings of the tribunal that where the assessee filed letters of confirmation of suppliers, copies of bank statement showing entries of payment through account payee cheques to suppliers and stock reconciliation statements, sale of purchased goods was not doubted, the tr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ccommodation entries without doing actual business. The AO relied upon the statement taken by the Sales Tax Department from some of the above listed parties and concluded that the purchases made by the assessee in respect of the above stated amount were bogus. He therefore added the said amount as unexplained expenditure into the income of the assessee. Being aggrieved by the above addition, the assessee preferred appeal before the Ld. CIT(A). 4. The Ld. CIT(A), considering the overall facts and circumstances of the case and the evidences furnished by the assessee, deleted the additions so made by the AO. Being aggrieved by the above deletion, the Revenue has come in appeal before us. 5. The Ld. A.R. of the assessee, before us, has su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mitted the purchases and sales as genuine. The following lines from the assessment order are relevant in this respect. The purchases of the assessee, per se, are not the issue here and these alleged purchases are not being treated as bogus. The Sales Tax Department has come down hard on the pernicious practices indulged in by these unscrupulous traders figuring in the list of suspicious dealers and it is evident that the assessee has not purchased the goods from these alleged suppliers. It is equally true that the goods, have somehow entered in the assessee's regular business. The assessee has been unable to give any convincing or cogent explanation as to how these goods happened to come in his possession. The assessee has, thus, i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the books of account of the assessee were bogus and no addition in this respect can be made. The Ld. A.R. of the assessee has relied upon the decision of the Hon ble Bombay High Court in the case of CIT vs. Nikunj Enterprises (P.) Ltd. (2013) 35 taxman.com 384 (Bombay) wherein the Hon ble Bombay High Court has upheld the findings of the tribunal that where the assessee filed letters of confirmation of suppliers, copies of bank statement showing entries of payment through account payee cheques to suppliers and stock reconciliation statements, sale of purchased goods was not doubted, the transactions were supported with evidences and confirmations, in such an event merely because the suppliers have not appeared before the AO or the Ld. CIT ..... X X X X Extracts X X X X X X X X Extracts X X X X
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