TMI Blog2019 (11) TMI 1420X X X X Extracts X X X X X X X X Extracts X X X X ..... raders. The addition made on account of bogus purchases came to ₹ 1,41,87,441/- whereas the addition on account of undisclosed income was to the extent of ₹ 1,13,84,071/-. Commissioner (Appeals) has found that this amount would get telescoped in the addition of ₹ 1,41,87,441/- sustained on account of bogus purchases. In the opinion of this court, there is no infirmity in the approach adopted by the Commissioner (Appeals). While it is true that the Tribunal has not given any categorical finding on this issue, nevertheless having regard to the approach adopted by the Commissioner (Appeals), no question of law arises. - R/TAX APPEAL NO. 705 of 2019 - - - Dated:- 11-11-2019 - HONOURABLE MS.JUSTICE HARSHA DEVANI AND HONOURA ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stment/bogus bills to various parties including the assessee, without delivering the goods mentioned in the bill. The statement of Shri Dharmendra Pandya was also corroborated by the continuous pattern of deposits by cheques and immediate cash withdrawals in the various bank accounts of M/s. Vishal Traders. The statement of Shri Dharmendra Pandya was also confirmed in the statement of Shri Madanlal L. Chandak (Shah) who introduced various parties to Shri Dharmendra Pandya. The statement of a partner of the assessee firm Shri Bhagwanbhai Patel also came to be recorded during the course of survey wherein he had admitted that only the bills are obtained from M/s. Vishal Traders. 4. During the year under consideration, the respondent assesse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... made. The assessee carried the matter in appeal before the Commissioner (Appeals), who deleted the addition by holding that the undisclosed income admitted by the assessee during the course of survey was on account of bogus purchases from M/s. Vishal Traders. The Commissioner (Appeals) held that this addition gets telescoped in the addition of ₹ 1,41,87,441/- sustained on account of bogus purchases. The revenue carried the matter in appeal before the Tribunal but did not succeed. 6. Mrs. Mauna Bhatt, learned senior standing counsel for the appellant, assailed the impugned order by submitting that the onus of proving that the purchases were genuine lay on the assessee and that the assessee could not substantiate the purchases with s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ained from Vishal Traders. The cheques issued to Vishal Traders were only an eye wash because the cash was returned back to the assessee which was obvious from the analysis of the bank accounts of Vishal Traders as well as the assessee maintained with Harij Nagrik Sahakari Bank. The Commissioner (Appeals) further noted that during the course of appellate proceedings, a letter dated 15.3.2012 had been received from the assessee wherein it had confessed that to regularise the billing, the accountant had obtained bills from Vishal Traders; whereas the goods were purchased from farmers/cultivators. The Commissioner (Appeals) found that the Assessing Officer had neither disputed the sales nor the stock position and, therefore, accepted the conte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ght of the concurrent findings of fact recorded by the Tribunal that the sales had not been disputed by the revenue authorities, no infirmity can be found in the approach adopted by the Commissioner (Appeals) as well as the Tribunal in restricting the addition made on account of bogus purchases to 25% of ₹ 5,67,49,767/- which comes to ₹ 1,41,87,441/-. Under the circumstances, no question of law can be said to arise insofar as the said issue is concerned. 12. Insofar as the proposed question (B) is concerned, the Commissioner (Appeals) has found that the assessee had accepted taking bills from Vishal Traders. The addition made on account of bogus purchases came to ₹ 1,41,87,441/- whereas the addition on account of undisc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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