Case Law Details
Euro Diamonds Pvt. Ltd. Vs ITO (ITAT Mumbai)
We noticed that the assessing officer has made the impugned addition on the basis of generalised information given by investigation wing that M/s Bhanwarlal Jain group is engaged in the business of providing accommodation sales bills without actually supplying the goods. There is no material on record to show that the impugned purchases made by the assessee from M/s Mayur Exports were identified as bogus or part of accommodation bills. On the contrary, it is the submission of the assessee that the diamonds were actually purchased from M/s Mayur Exports, which stood proved by the fact that the said purchases have been verified by the Government Authorities placed at SEZ, where the assessee is located. The Ld A.R invited our attention to copies of few bills and we noticed that the said bills contain the stamp of Government officials’ for having verified the goods and their Certificate is affixed on each of the bills. The said seal contain a Serial number and date and further the Preventive Officer signs the bills with certification “Accepted the Declaration passed in (01) Sealed to Unit”. We noticed that the fact that the goods were subjected to verification by the Government officials has not been taken note of by the tax authorities. Thus the movement of goods from M/s Mayur Exports to the assessee could not be doubted with. It is pertinent to note that the AO has not brought any material on record to show that the assessee could have purchased the goods from persons other than M/s Mayur Exports in support of the bills received from M/s Mayur Exports. In the absence of materials in support of this presumption, the same cannot be accepted.
Further, the assessee has furnished copy of confirmation letters given by M/s Mayur Exports for the supply of goods and receipt of payments. The payments for the above said purchases have been routed through the banking channels.
We noticed that, on identical set of facts, the coordinate bench has deleted the addition made in the hands of M/s K’s jewellery and Co (supra).
Accordingly, following the above said decision of the co-ordinate bench, we hold that the impugned addition made alleging bogus purchases could not be sustained. Accordingly, we set aside the order passed by Ld CIT(A) and direct the AO to delete the addition relating to purchases made from M/s Mayur Exports.
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