Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2014 (9) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2014 (9) TMI 654 - AT - Income TaxAddition of bogus purchase – Held that:- The AO observed that inquiry was conducted by the department in case of M/s. Prakash Marbles Engineering Company, Dabhoi Road, Baroda for A.Y. 2002-03 - bogus purchase by way of accommodation bills for purchase of material without, in actually, any material being purchased, were procured from Shri Jabbarsingh Chauhan, Proprietor of M/s. Girnar Sales Corporation and Shri Navin Raval, Proprietor of M/s. Shiv Metal Corporation - During the course of inquiry, it was also found by the AO that apart from issuing bogus bills to M/s. Prakash Marbles Engineering Co, the parties through their fictitious concerns had issued such bogus bills to various parties in the market and one of them being General Mechanical Works, who had sought these accommodations bogus bills from Shri Navin Raval, claimed to be the proprietor of fictitious firm, M/s. Girnar Sales Corporation during the accounting period relevant to the AY 2002-03. These are the bogus purchases to the extent of ₹ 14,32,750 – relying upon ITO vs. Shri Gumanmal Misrimal [2011 (1) TMI 1284 - ITAT AHMEDABAD] - assessee had not proved the purchase genuine - The supplier had already given affidavits that they have given bogus bills to the assessee - Therefore, burden is heavily on the assessee to prove that these transactions are genuine, which has not been discharged by it - the net profit @ 30% on bogus purchase is reasonable - The A.O. is directed to calculate 30% net profit on bogus purchase and compute the income – Decided partly in favour of assessee.
|