ITO-12(3)(1), MUMBAI., AAYAKAR BHAVAN vs. MYVISION ADVERTISING PRIVATE LIMITED, MUMBAI

Facts

The Revenue filed an appeal against the order of the CIT(A) who had restricted additions made by the AO on account of bogus purchases. The assessee did not appear for the hearing, and the appeal proceeded ex-parte. The assessee failed to prove the genuineness of purchases and their source.

Held

The Tribunal held that the assessee failed to discharge the onus of proving the genuineness of purchases and their source. Following the decision of the jurisdictional High Court, the Tribunal reversed the order of the CIT(A) and restored the order of the AO.

Key Issues

Whether the assessee discharged the onus to prove the genuineness of purchases and their source, and if the CIT(A) was justified in restricting the additions made by the AO.