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2019 (10) TMI 307 - AT - Income TaxBogus purchases - assessee has taken accommodation entries of bogus purchases from the benami concerns of Bhanwarlal Jain group, discovered during the course of search - CIT-A restricting the addition to 3% of the total bogus purchases - HELD THAT:- In the instant case, there was no search proceeding in the premises of the assessee nor any blank signed cheque book, voucher have been found there was no response to the summons issued by the AO u/s 131 of the Act to the seven parties. The purpose for issuing the summons to the said parties was to establish the genuineness of the purchases. However, we find that as recorded by the AO at para 4.6 of the assessment order, the assessee had filed copy of the ledger accounts, sample bills, bank statements reflecting the above transactions and corresponding sales were provided. We refer to the decisions of the Tribunal in the case of the assessee having similar type of business. In M/s Naitik Gems v. ITO [2017 (11) TMI 1708 - ITAT MUMBAI] the assessee was a partnership firm engaged in the business of trading and export of diamonds. The Tribunal has confirmed the profit @ 3% on bogus purchases. We uphold the order of the Ld. CIT(A) - Decided partly in favour of assessee.
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