Case Law Details
ACIT Vs Neena Hardeep Singh (ITAT Delhi)
ITAT Delhi held that addition towards alleged bogus purchases unsustainable as cross examination of person based on which AO was drawing inferences was not allowed and payments were made through banking transactions.
Facts- The assessee had claimed to be engaged in the business of fabrication and trading of readymade garments. AO found that the assessee has shown purchases amounting to Rs. 76,88,380 /- from M/s. Thakur Associates but on investigation made at the premises it was found that it was a residential house of the brother of Sanjiv Thakur, the proprietor of M/s. Thakur Associates.
The assessee was directed to ensure the presence of the party himself for verification of genuineness of transactions. However, as assessee failed to produce anyone, Ld. AO considered M/s. Thakur Associates to be an entity created to provide accommodation entries. Ld. AO observed that the confirmation filed by the assessee from M/s. Thakur Associates was not reliable and thus in the absence of any other details like purchase bills, challans, details of material purchase and their utilization for making sales, Ld. AO treated the purchase made from M/s. Thakur Associates as bogus purchases.
CIT(A) deleted addition on account of alleged bogus purchases from Ms/. Thakur Associates. Being aggrieved, revenue has preferred the present appeal.
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