Omnitel Technologies Pvt. Ltd. Vs ITO (ITAT Delhi)
Whether, the addition on account of alleged bogus purchases of capital assets could be sustained merely on the basis of information received from the Investigation Wing, despite the assessee having furnished complete documentary evidences such as invoices, transportation documents, bank statements, loan agreements and insurance policies evidencing actual purchase and existence of such assets.
Facts of the Case:The assessee company was engaged in providing telecom services to Government authorities and had purchased certain fixed assets which were capitalized in the books of account. The purchases were made from parties alleged by the Investigation Wing to be accommodation entry providers. The assessee contended that the assets were genuinely purchased, financed through bank loans, duly recorded in books, insured after physical verification and used for business purposes. The assessee had not claimed the purchase amount as revenue expenditure but only claimed depreciation on such capital assets.
Findings of the Assessing Officer and CIT(A): The Assessing Officer, relying solely upon the information received from the Investigation Wing regarding alleged bogus billing by the supplier, treated the entire purchases as non-genuine and made addition of the full amount by invoking the provisions of the Act. The AO did not carry out any independent inquiry nor brought any material on record to disprove the evidences submitted by the assessee. The Ld. CIT(A) partly allowed the appeal by deleting the addition towards alleged commission but upheld the addition on account of purchases treated as bogus.
