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2019 (9) TMI 1067 - ITAT MUMBAIAssessment u/s 153A - addition of bogus purchases - HELD THAT:- From the record we found that during these assessment years, the assessee had also paid sales tax alongwith interest thereon. Thus, there is no saving on account of sales tax liability which was alleged to be evaded by having entered into such alleged bogus purchases. Considering quantitative details of goods purchased and sold and had also furnished quantitative reconciliation of goods so purchased and sold, the correctness of which was not doubted by the lower authorities respectfully following the order of the Tribunal in assessee’s own case, wherein the facts and circumstances are same, we direct the AO to restrict addition to the extent of 2% of bogus purchases. From the record, we also found that in the A.Y.2008-09, assessee had shown profit of 0.62% on the normal purchases i.e. purchases other than alleged bogus purchases, whereas margin earned in respect of alleged bogus purchases was 0.61%. Thus, we found that there is only difference of 0.01% in the margin shown by the assessee in respect of alleged bogus purchases vis-à-vis purchases other than alleged bogus purchases. Similarly, in the A.Y.2010-11 margin earned in respect of normal purchases i.e. purchases other than from alleged bogus purchases is 2.65%, whereas margin in respect of alleged bogus purchases is 1.89%. Thus, the difference in margin is just 0.76%. Thus, we found that upholding the addition to the extent of 2% of bogus purchases will serve the end of justice, which is in consonance with the order passed by the Tribunal in assessee’s own case and group concern, as stated above. Since the Tribunal have already upheld the addition to the extent of 2% in respect of purchases made from M/s. Sai International Impex, which purchases was again added by the AO while completing assessment u/s.143(3) r.w.s. 153A, which amounts to double addition. Accordingly, AO is directed to take care of addition already upheld by the Tribunal in respect of purchases from M/s. Sai International Impex
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