The assessee could only furnish the bank statements to substantiate his claim that the payments were made by cheque. The assessee also did not take any serious steps to prove the genuineness of the suppliers. Therefore, the Assessing Officer held that the purchases made by the assessee from those individuals were bogus transactions. Thereafter, the Assessing Officer estimated 10 per cent. of the bogus purchase as the undisclosed income of the assessee which worked out to Rs. 9,30,487 (10 per cent. of Rs.93,04,866). The CIT (A) took the view that the entire bogus purchase of Rs. 93,04,866 had to be added to the income of the assessee and enhanced the addition.  On appeal the Tribunal held that the order of the Commissioner (Appeals) to enhance the addition treating the entire bogus purchases as the income of the assessee was not appropriate because the assessee had made purchases apparently from his accounted money as the payments had made through banking channels. Further the gold and jewellery purchased were either sold by the assessee or remained with the assessee as his closing stock, since there were no other contrary findings by the Department. Therefore, the order of the CIT (A) was set aside and the order of the Assessing Officer was confirmed.(AY.2009-10)