2011 (8) TMI 1101 - GUJARAT HIGH COURT

Bogus purchases - Held that:- There was evidence on record to suggest that though purchases may not have been made from M/s. Shreenathji Industries as initially suggested by the assessee in the books of account, nevertheless the factum of actual purchases was placed for verification by the assessee before the authorities. In fact, assessee's assertion appears to have been that purchases had to be made from other parties who were not reflecting such sales in their account for saving taxes such as incometax, sales tax etc.

Be that as it may, we see no material distinction in facts involved in the present case and in case of Sanjay Oilcake Industries (2008 (3) TMI 323 - GUJARAT HIGH COURT). It is true that the Delhi High Court treated the issue somewhat differently. However, when the decision of our Court lays down certain ratio, in the absence of any special reason to differ, we would have to follow the same.

Other issues are consequent in nature. As already recorded, CIT (Appeals) had addressed the issue of applicability of section 40A(3) of the Act. Under the circumstances, though it is true that the Tribunal did not separately discus this issue, only for that reason, we see no reasons to interfere.