Case Law Details
PCIT Vs Vaman International Pvt. Ltd. (Bombay High Court)
The issue under consideration is whether the Tribunal was justified in holding that provisions of section 69C of the Income Tax Act, 1961 are not applicable for assessee?
High Court states that, the assessee had filed copies of purchase bills, copies of purchase/ sale invoices, challan cum tax invoices in respect of the purchases, extracts of stock ledger showing entry/exit of the materials purchased, copies of bank statements to show that payment for such purchases were made through regular banking channels, etc., to establish the genuineness of the purchases. Whereas, Assessing Officer could not bring on record any material evidence to show that the purchases were bogus. Mere reliance by the Assessing Officer on information obtained from the Sales Tax Department or the statements of two persons made before the Sales Tax Department would not be sufcient to treat the purchases as bogus and thereafter to make addition under Section 69C of the Act. If the Assessing Officer had doubted the genuineness of the purchases, it was incumbent upon the Assessing Officer to have caused further enquiries in the matter to ascertain genuineness or otherwise of the transaction and to have given an opportunity to the assessee to examine/cross-examine those two parties vis-a-vis the statements made by them before the Sales Tax Department. Without causing such further enquiries in respect of the purchases, it was not open to the Assessing Ofcer to make the addition under Section 69C of the Act.
Accordingly, Appeal filed by Revenue is accordingly dismissed.
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