Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2017 (8) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (8) TMI 1286 - AT - Income TaxBogus purchases - unexplained income - addition u/s 69C on the basis of estimation of % net profit- proof of genuineness - Held that:- The assessee has failed to produce those parties before the AO to prove that the parties are in existence and the purchases made from those parties are genuine in nature. It is also an undisputed fact that the Sales-tax Department of Maharashtra has conducted an investigation and listed those parties as hawala operators / bogus sellers involved in the activity of providing accommodation entries without actual delivery of goods. Though the assessee filed certain evidences in the form of sales bills and payment details to prove the purchases are genuine, but failed to file further evidences in the form of delivery notes, weigh bridge slips, etc. Therefore, prima facie, the assessee failed to discharge the onus cast upon him to prove the purchases as genuine. As in the case of Vijay Proteins Ltd vs CIT (2015 (1) TMI 828 - GUJARAT HIGH COURT ) observed that additions cannot be made of total bogus purchases and what needs to be taxed is only the profit element embedded in such bogus purchases depending upon the nature of business.With the observations held in this case , therefore we directed the AO to estimate net profit of 20% on alleged bogus purchases made from those parties in present case - Appeals of revenue are partly allowed.
|