2017 (8) TMI 1296 - AT - Income Tax

Bogus purchases - disallowance on account of transaction with the parties, which were involved in hawala transaction - purchases made from the open market without insisting genuine bills - Held that:- The assessee was a trader and on asking by the Assessing Officer, furnished the necessary details like bills, vouchers, payment through banking channel and the bank statements, therefore, the facts are distinguished, however, by taking a broader view, and considering the overall facts and circumstances, to plug the leakage of revenue, we are of the view that it will meet the end of justice if the addition is enhanced to 20% of the disallowance in place of 15% restricted by the Ld. Commissioner of Income Tax (Appeal), consequently, the appeals of the Revenue are partly allowed.