TMI Blog2017 (12) TMI 1479X X X X Extracts X X X X X X X X Extracts X X X X ..... appeal filed by the assessee against the order of CIT(A)- 29, Mumbai for A.Y.2010-11 in the matter of order passed u/s.143(3) r.w.s. 147 of the Act. 2. The following grounds have been taken by the assessee:- The grounds mentioned hereunder are without prejudice to one another:- 1) On the facts and circumstances of the case, the Id. Commissioner of Income Tax (Appeals) erred in upholding the Re-opening of assessment U/s.147 of the Income Tax Act for A.Y. 2010-11 on the basis of List uploaded on the website of the MVAT Department without any corroborative evidences as required for formation of belief for escapement of Income u/s.147 of the Income Tax Act. 2) On the facts and circumstances of the case, the Id. Commissioner ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ness of purchases made independent enquiry and the assessee was asked to produce certain details like name of the seller with current full address and PAN. bill and voucher No, with date and description of goods purchased, quantity, rate and amount, goods dispatched, mode of transportation etc. The assessee could not produce any of the evidences during the course of assessment proceedings that he did not accept the findings of the sales tax department. Even the notices issued u/s.133(6) to purchase parties returned back unserved with the remarks 'not known' or 'left'. The AO held that mere filing of evidences in support of purchases and payments made through account payee cheques cannot be conclusive in a case where genuinen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... en proved in view of the fact that the parties are not traceable. The AO presumed that the purchases must have been made from some other parties in the grey market at a lesser rate. He therefore made an estimate of the additional profit which the assessee would have been made which was 12.5% of the alleged bogus purchases. The purchases made from the alleged parties have not been established beyond doubt by the assessee. Coming to the addition made, The ITAT, Ahmedabad (C' Bench in the case of Vijay Proteins Ltd. vs. ACIT 58 ITD 0428 held that in similar circumstances, 25% of the purchase price accounted through fictitious invoices has to be disallowed. The Hon'ble High Court of Gujarat in the case of Sanjay Oil cakes v/s CIT ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nsaction details were furnished by the assessee. Even the AO has made independent enquiry, wherein suppliers were not traceable nor produced by the assessee before the AO. 7. I have considered rival contentions and carefully gone through the orders of the authorities below and found from record that factum of purchases from bogus suppliers have been established. Under these facts and circumstances, the CIT(A) has very reasonably restricted the addition to the extent of 12.5% and had given further relief to the extent of profit already declared by the assessee @6.5%. Thus, net addition so sustained by the CIT(A) is to the extent of 6.25% of the alleged bogus purchases. 8. Nothing was placed on record by learned AR so as to persuade me ..... X X X X Extracts X X X X X X X X Extracts X X X X
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