Initial burden lies on assessee to prove genuineness of purchases

RELEVANT PARAGRAPH 18. When an expenditure is claimed to have been incurred the initial burden lies on the assessee to prove the genuineness of the purchases. It is held by Rajasthan High Court in the case of Indian Wollen Carpet Factory (supra) that, if the assessee having failed to prove the genuineness of credit purchase by producing the parties from whom the purchases are said to have been made and whose whereabouts are not known, the finding of the Tribunal sustaining the addition was held justified. The High Court held in paragraph 4 as under: ” Heard learned counsel for the parti...