TMI Blog2022 (6) TMI 967X X X X Extracts X X X X X X X X Extracts X X X X ..... ugh banking channel and backed by documents showing movement and delivery thereof. Revenue has miserably failed to dislodge the sanctity of such formidable evidences in any manner except a statement of third person whose connection with the supplier has not been established. This apart, Shri Bhatia, i.e., witness has not been confronted to the assessee to unearth the truth. The assessee is entitled to cross-examine Shri Bhatia for a just and fair decision making. The Revenue has denied this valuable right and thus infringed the salutary principles despite request from the assessee before the lower authorities. Thus, the statement of Shri Bhatia is to be regarded as an extraneous to the determination of the issue. Once the statement of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bmission made before her. (a) That payments to the suppliers have been made through RTGS, banking channels; (b) That the assessee has paid Entry Tax of these purchases, while entering goods in Punjab; (c) That the goods so purchased are duly entered in Stock Inward Register; (d) That all such purchases were duly supported by way bills, Bilty Etc. (e) That all purchases, when sold are duly entered in Sale Register; (f) That assessee company is an excisable unit 85 excise duty has also been paid on Sales thereof; (g) That Quantitative Details of Opening Stock, Purchases, Sales, Work In Progress Closing Stock, if OK, how the purchases can be bogus; (h) That the Ld. AO have not pointed out any discrepan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bogus purchase at 20%. 6. Aggrieved, the assessee preferred appeal before the CIT(A). The CIT(A) has endorsed the action of the Assessing Officer in principle but however modified and scaled down the amount of disallowance to Rs.6,50,160/- applying the average GP rate @ 16.26% instead of ad hoc 20% estimated by the Assessing Officer. 7. Aggrieved by the estimated additions of alleged bogus purchases, the assessee preferred appeal before the Tribunal. 8. We have carefully considered the rival submissions. The assessee has challenged the allegation of bogus purchases from M/s. Rishabh Food stated to be controlled by Shri Ram Prakash Bhatia and consequent estimated additions on the basis of GP rate in the past years of the assessee- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... te documentation, the purchases made by the assessee running large scale business and showing huge profits could not have been discarded summarily on the basis of some unverified statement of one Shri R.P. Bhatia whose connection with the supplier M/s. Rishabh Foods has not been established at all. It was thus contended that neither the cross-examination has been provided nor the locus standi of the deponent of so called statement has been established. The assessee further contends that the CIT(A) has also brushed aside tell-tale evidences and summarily endorsed the action of the Assessing Officer based on some unvouched information and without giving any justification for giving undue weightage to the statement of unidentified person whi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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