TMI Blog2021 (4) TMI 1338X X X X Extracts X X X X X X X X Extracts X X X X ..... In such circumstances, we are of the opinion that the purchases claimed by the assessee are not free from doubt. The assessee has to demonstrate sales corresponding to the purchases. In the case relied upon by the assessee, the sales were made to government department and thus sales were not doubted, but the instant case it has not been brought on record, whether the sales are made to the government Department or export sales. If the sales corresponding to the purchases are not demonstrated, then possibility of the entire purchases being doubtful cannot be denied. If the corresponding sales are demonstrated, then even if delivery of goods from purchase parties is not established, then possibility of purchase of goods in cash from another parties, cannot be denied. We are of the opinion that without reconciliation of purchases and corresponding sales with the help of the stock register, sustaining the disallowance of entire purchases is not justified. Therefore, we restore this issue back to the file of the Assessing Officer for deciding afresh with the direction to the assessee to file stock reconsideration statement along with relevant invoices of sales, documents in suppor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 33. 4. The Assessing Officer observed that notices issued under section 133(6) of the Act were returned back in case of the first two parties. In case of party at Serial No. 3, no reply was received back. The reply received in case of fourth party was not found tenable by the Assessing Officer. In view of the observations, the Assessing Officer asked the assessee to produce those parties. But, the assessee failed to produce those parties and filed only document available in his books of accounts i.e. purchase bills and ledger accounts of those parties in the books of the assessee. Regarding the purchase bills, the Assessing Officer observed that same were identically computer-generated and appeared not to be genuine. Therefore, again the Assessing Officer asked the assessee to produce those parties to whom notice under section 133(6) of the Act was issued. The Assessing Officer also attempted to verify the genuineness of the parties through Inspector of his office. The Inspector reported that M/s Micro International and M/s Apex Traders could not be located as no such addresses existed. Regarding M/s Silver Line (India), the Inspector reported that an NGO named Pehala Kadam wa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s assumed that at some point of time the parties managed to get VAT No. registered, by showing their address at a particular place, the reason for non existence of those addresses on subsequent inquiry is not explained at all. If the postal authorities are wrong and the Inspector of the Income Tax Department cannot trace these parties on the given addresses, it is not explained by the Appellant what effort has been made by it to locate these parties and report to the Assessing Officer for inquiry. Obviously, the Appellant is trying to shift the blame on the Assessing Officer whereas the fact remains that the onus to prove the genuineness of the purchases was on the Assessee and the primary responsibility was to give correct address of the parties. The submission of the Appellant that inquiries are conducted after 3 years from the dates of transaction is again not comprehensible because one party may change its address in the span of 3 years but how is it possible that all 3 parties are not available ? The Appellant has stated that the ground for rejecting the purchase from M/s Silver Line (India) is vague as she has only written with respect to the reply received from this party - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sition, he relied on the decision of the Hon ble Bombay High Court in the case of CIT Vs Nikunj Eximp Enterprises (P) Ltd in ITA 5604 of 2010. 6. The Learned DR, on the other hand, relied on the order of the lower authorities and submitted that the assessee has not supported corresponding sales with the help of the stock register. He submitted that in the case relied upon by the assessee, the tax payer filed letter from the suppliers with stock reconciliation, however, in the instant case, neither confirmation, nor any stock reconciliation statements has been filed and therefore, the case relied upon is distinguishable. 7. We have heard rival submission of the parties on the issue in dispute and perused the relevant material on record. In the instant case, the Assessing Officer has disallowed the purchases of Rs. 48,01,597 shown by the assessee from three parties. According to the Assessing Officer, the bills issued by those parties are computer-generated identical bills and in his opinion same were not genuine. Further, on verification through notice under section 133(6) of the Act and through Inspector of his office, those parties were found not in existence at the addresse ..... X X X X Extracts X X X X X X X X Extracts X X X X
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