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2015 (8) TMI 1305 - ITAT CHANDIGARHReopening of assessment - bogus purchases - information received by the Assessing Officer from the office of Director General of Central Excise, Intelligence that the assessee had wrongly availed CENVAT credit - Held that:- It is quite evident that the assessee had made purchases from the open market and shown the same to be made from Haryana Steel & Alloys Pvt. Ltd. just to avail the CENVAT Credit. Therefore, no addition on account of total purchases is warranted. The assessee having already offered the CENVAT Credit so availed as its income. Further the Department having accepted the fact that the only issue remaining in the said factual back ground is that of CENVAT Credit, having not proposed any addition on account of bogus purchases in subsequent years, no different stand can be taken in the relevant assessment year. The addition made by the learned CIT (Appeals) by enhancing the addition on bogus purchases was not justified. May be books are rejected need not necessarily to make addition. We rely on the judgment of Hon'ble Rajasthan High Court in the case of Gotan Lime Khanij Udyog,[2001 (7) TMI 19 - RAJASTHAN High Court ]. However, in the factual background of the case, it would not be appropriate for Revenue to challenge the position which it has been sustaining in the other year on identical facts. The addition made by the authorities below in sum of ₹ 12,23,560/- on account of CANVAT credit, therefore, stands as not challenged. However, the orders of authorities below are set aside to delete entire addition on account of GP and bogus purchases. - Decided in favour of assessee.
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