BGR Energy Systems Ltd. v. ACIT (2022)96 ITR 625 (Chennai) (Trib) CIT v. Sasikala Raghupathy (Smt.) (2022)96 ITR 625 (Chennai) (Trib)

S. 115BBE : Tax on specified income-Income from undisclosed Sources-Bogus purchases-Construction business-Confessional statement by suppliers-Accommodation entries of Bill trading without any supply of materials-Failure to file necessary evidence in support of purchases-Addition is justified.

 

The Tribunal held that the Payment by cheque itself was not sufficient evidence to prove the alleged bogus purchases when all other evidence was to prove a fact that purchases were bogus in nature. The assessee was a listed public limited company but had failed to offer any explanation as to why standard operating procedures for recording purchases were not followed in respect of purchases from those parties. Voluminous evidence gathered during the course of the search and post-search investigation, including statements recorded from parties, clearly indicated that the assessee had indulged in obtaining accommodation entries of bill trading without any supply of materials. The assessee had failed to counter the confession statement given by alleged suppliers that they never supplied any goods to the assessee, and further, they issued only bills against payments and returned cash to the assessee after deducting their commission. (AY. 2011-12 to 2014-15)