Vbcjewellery, Chennai vs Dcit, Chennai on 24 October, 2018
3. It was submitted by the ld.AR that in the course of assessment,
the ld.Assessing Officer had disallowed the entire purchases made by
the assessee from the persons mentioned in the chart in page-2 of the
assessment order (A.Y 2009-10). It was a submission that the
Assessing Officer had received certain information from the Sales Tax
Department(VAT), Investigation Division, Mumbai, Maharastra wherein
the proprietors of those companies had specifically confirmed that they
were providing accounting entries and the transactions in their names
were bogus. It was submitted by ld.AR that the assessee does not
have evidence to prove that the transactions specifically on account of
fact that the business of the sellers have closed. It was a submission
that the purchases have also been included in the stock and the same
have also been sold and if at all what is disallowable was only the
gross profit in respect to the transactions. It was a further submission
that in fact, no addition was liable to be made in view of the decision
of the Co-ordinate Bench of this Tribunal in the case of M/s.VBC
Jewellery Vs. The DCIT, in ITA NOs.653,654, 1464 & 1465/Chny/2017
dated 24.10.2018 wherein it had been held as follows:-