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2022 (10) TMI 152 - AT - Income TaxEstimation of income - Bogus purchases - HELD THAT:- Undisputedly, the assessee has indulged in obtaining bogus purchase bills from hawala dealers as listed by the Sales Tax Department, Government of Maharashtra. The assessee failed to furnish any cogent evidence viz. delivery challans, GR, stock register to show delivery of goods. At the same time The sales turnover and the closing stock declared by the assessee have not been disputed by the Revenue. Without inputs there cannot be manufacturing/sales, therefore, in such circumstances, it is only the profit element embedded in unproved purchases that can be brought to tax and the entire bogus purchases cannot be disallowed.[See PCIT vs. Paramshakhti Distributors Pvt. Ltd. [2019 (7) TMI 838 - BOMBAY HIGH COURT]] - CIT(A) has restricted the disallowance to 12.5% of the bogus purchases and the same has been accepted by the assessee - no infirmity in the impugned order, hence, the same is upheld and appeal of the Revenue is dismissed.
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