9911796707
TMI Blog2023 (4) TMI 577X X X X Extracts X X X X X X X X Extracts X X X X ..... ng before us pursuant to the order dated 24/02/2023, passed by the coordinate bench of the Tribunal in ITO vs Shri Surekha Anil Lokre, M.A. no. 134/Mum./2021 (in ITA no. 3238/ Mum./2019, for the assessment year 2010-11), whereby, the earlier order dated 16/09/2020, passed under section 254(1) of the Act was recalled and the appeal was directed to be re-fixed for hearing. 3. When the appeal was called for hearing neither anyone appeared on behalf of the assessee nor was any application seeking adjournment filed. Therefore, in view of the above, we proceed to dispose off the present appeal ex-parte, qua the assessee after hearing the learned Departmental Representative ("learned DR") and on the basis of material available on record. 4. In t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s emanating from the record are: The assessee is a proprietor of M/s Tejal Engineers and the proprietary concern is engaged in the business of manufacturing transformer bushing parts meant for electricity/power supply companies. For the year under consideration, the assessee filed his return of income on 09/10/2010 declaring a total income of Rs.2,57,160. The return filed by the assessee was processed under section 143(1) of the Act. Subsequently, on the basis of information received from the Sales Tax Department that the assessee was engaged in the practice of inflating the purchases through hawala parties, proceedings under section 147 of the Act were initiated and notice dated 19/01/2015 under section 148 of the Act was issued and served ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fication. The AO vide order dated 23/03/2016 passed under section 143(3) of the Act did not agree with the submissions of the assessee and held that the assessee failed to furnish documentary evidence substantiating receipt of the material claimed to be purchased from these parties. The AO also held that the assessee has not furnished any documentary evidence to show that material was really received by the firm. Further, the AO held that the assessee has failed to produce the parties, from whom purchases were made, for verification or furnish the present whereabouts of such parties despite the opportunity being granted to the assessee. Accordingly, the AO held that the assessee did not purchase the material from the parties mentioned in th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 present a facade of genuineness and does not necessarily mean that the purchases from these parties are genuine. The Courts have held that payment by cheque by itself is not sacrosanct so as to prove genuineness of purchases when the surrounding circumstances are suspect. However, the appellant has shown onward sales which has not been doubted by the Assessing Officer. Since there can be no sales without corresponding purchases, the only ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he details of the supplier as sought by the Revenue. In support of his claim, the assessee furnished copies of bills, Ledger accounts, delivery challan, transportation details, stock register, and bank statements showing payments made to these parties through banking channels before the lower authorities. However, we find that before the lower authorities, the assessee was unable to produce the parties. Even before us, no such detail is available on record. Therefore, from the material available on record it is evident that the assessee has failed to prove the genuineness of the purchases made from these entities. However, at the same time, the Revenue has not doubted the sales declared by the assessee. Further, it cannot be doubted that wi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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