2018 (2) TMI 858 - AT - Income Tax

Addition made u/s 69C - bogus nature of purchases made from suppliers and the parties were not found existing at the given addresses - estimation of profit - FAA restricted the addition @ 12.5% of the bogus purchases - Held that:- In such type of cases, there is no option but to estimate the profit which depends upon the subjective approach of an individual and the material facts available on record. In the present appeals, before this Tribunal, as mentioned earlier, the assessee is in the business of trading of Iron & Steel. AO received information from the Sales Tax Department that the assessee claimed to have made purchases from 15 bogus concerns, the names of whom are available in the assessment order and the Ld. Assessing Officer also made independent enquiries and then made the addition on account of bogus purchases. Even the notices issued u/s 133(6) to such parties were returned unserved. On further investigation by the Inspector of the Department, no such parties were found existing at the given addresses. In such a situation, the First Appellate Authority has taken a reasonable, which requires no interference.

Contention of the Ld. counsel for the assessee, that GP of last ten year was not more than 4% is concerned, it depends upon the facts of the each case and probably in other years there may not be allegation of bogus purchases and each year is independent. No material was produced before this Tribunal contradicting the factual finding recorded in the impugned order. - Decided against assessee

Addition u/s 68 - Held that:- Neither before the Ld. Commissioner of Income Tax (Appeal) nor before this Tribunal, no evidence was produced by the assessee in support of his claim. Thus, considering the factual matrix, no infirmity is found in the conclusion of the Ld. Commissioner of Income Tax (Appeal), resultantly, this ground of the assessee is having no merit, therefore, dismissed.