The assesssee is engaged in the business of manufacturing and selling Indian made Foreign liquor. The Assessing Officer disallowed the alleged bogus purchases on the ground that the Director has made statement before the Assistant Commissioner of Sales Tax (I-27), Investigation Branch Mumbai admitting that they have issued invoices / bills without delivery of goods as hawala bills. The notice issued to these parties u/s 133(6)) of the Act remained unserved they are not available / traceable. Officer by an order sheet requested the assessee to produce the said parties before officer for verification but the assessee did not produce them. The appeal was partly allowed because the addition by the Assessing Officer on account of alleged bogus purchases was confirmed by the CIT(A).  On appeal Tribunal deleted the addition. Relied on  order in MPIL Steel Structuress  Ltd. v. DCIT  (ITA No.  6602 /Mum/ 2014  (AY. 2011-2012 On appeal by Revenue the High Court  held that the quantity details and stock register stating various gift item purchased from various parties, delivery challans and also confirmation from few wine shops about description of goods and quantity of goods distributed. Accordingly affirmed the order of the Tribunal.   (ITA No.1404 of  2017, 1418 of 2017  dt. 22-11-2021) (AY.  2009-10)

PCIT  v. Allied Blenders and Distillers Pvt. Ltd. (Bom.)(HC) (UR)