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2019 (6) TMI 582 - ITAT MUMBAIBogus purchases - CIT-A estimating 22.83% as profit embedded in total purchases of ₹ 14,86,922/- made from three parties - AO received information from Sales Tax department wherein it was mentioned that the assessee had obtained bogus purchase bills - HELD THAT:- In the light of various factual evidences, supporting documents, confirmation and affidavit confirming the transactions filed by M/s. Chemi Age Enterprises, which remain uncontroverted by the revenue and on which no adverse findings were recorded by AO or by the CIT(A), the claim of the assessee deserves to be accepted as assessee had given complete evidences for movement of goods from M/s. Chemi Age Enterprises to the assessee. The assessee has also gone a step ahead in providing evidences in respect of source of source of purchases made by M/s. Chemi Age Enterprises from two other outside parties. Without disputing these facts, drawing adverse inference on the assessee merely on the ground that the said party was not produced by the assessee before the ld. AO for examination, in our considered opinion, could not be sustained in the eyes of law. We hold that the purchases made by the assessee from M/s. Chemi Age Enterprises deserves to be accepted as genuine purchases and accordingly, we direct the ld. AO to delete 22.83% of ₹ 61,30,150/- straightaway. With regard to purchases made from other two parties, we hold that this Tribunal in a series of decisions have been constantly holding that adoption of profit at 12.5% on the value of such purchase would meet the ends of justice. Respectfully following the various decisions of this Tribunal, we direct the ld. AO to adopt 12.5% of value and purchases of ₹ 32,723/- and ₹ 3,50,147/- from M/s. Sumukh Corporation and M/s. International Trade Agency respectively. Accordingly, the original grounds raised by the assessee are partly allowed.
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