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M/s Dharmik Exim Pvt. Ltd. Versus ACIT, Range-9 (1) , Mumbai and DCIT, Range-9 (1) , Mumbai Versus M/s Dharmik Exim Pvt. Ltd.,

2015 (8) TMI 1203 - ITAT MUMBAI

Bogus purchases - deletion of 75% of bogus purchases by CIT(A) - matter further travelled to the Hon’ble Bombay High Court, wherein set aside the order of the ITAT insofar as it relates to disallowance of purchases and restored the matter back to the file of ITAT for fresh consideration of the issue - Held that:- After considering the assessee's affidavit, the Hon'ble High Court restored the matter back to the file of the Tribunal for fresh consideration by considering the assessee's plea that t .....

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rly conceded that the matter may be restored to the file of the A. O. for re-examining the alleged purchases in the light of the fact that all the eight parties from whom purchases was made are having PAN.

Thus we restore the matter back to the file of the A. O. for deciding the genuineness of the purchases made from eight parties having PAN as supplied by the assessee before the Hon'ble High court as per the affidavit dated 31.12.2011, as reproduced above. - Decided in favour of asse .....

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ssessee in both the assessment years which pertains to addition made on account of bogus purchases. In the A. Y.2000-01, the assessee is aggrieved for addition made on account of bogus purchases. The revenue in its appeal is aggrieved for deletion of 75% of the bogus purchases. We found that originally appeal of the assessee and revenue was disposed off by the Tribunal vide order dated 9-9-2010, wherein appeal filed by the revenue with regard to deletion of 75% of bogus purchases was allowed whe .....

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e issue. The precise observation of the Hon ble High Court was as under :- 1. Whether the ITAT was justified in disallowing the purchases made by assessee from a parties amounting to ₹ 3.79 crores, is the question raised in this appeal. The ITAT has dismissed the appeal filed by the Assessee mainly on the ground that the assessee failed to furnish the permanent account numbers of the 8 parties from whom the assessee claimed to have made purchases. It is the case of the assessee that the pe .....

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chases amounting to ₹ 3.79 crores and restore the matter to the file of ITAT for fresh consideration of the issue. In view of the above direction given by the Hon ble jurisdictional High Court in respect of assessment year 2000-01, we are in sesin of the matter. 4. We have considered rival contentions, carefully gone through the orders of the authorities below as well as order of the Hon ble High Court dated 9-1-2012. Facts in brief are that in the course of original assessment addition wa .....

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he disallowance of entire purchase there by allowing revenue s appeal and dismissing the assessee s grounds on the issue of bogus purchase. Assessee approached to the Hon ble High Court and the Hon ble High Court vide order dated 9-1-2012 after observing that, it is the case of the assessee that the permanent account numbers of the 8 parties were in fact furnished during the course of assessment proceeding , restored the appeal back to the file of the Tribunal for fresh consideration. As per the .....

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Indian Inhabitant, Director of the Appellant Company, having office at 106 Rub Y. Indusfri. Al Estate, Chincholi Bunder Extn., Malad(West), Mumbai -400 064 do hereby solemnly affirm and state as under: 1. That during the previous year ended 31.03.2000, relevant for A. Y. 2000-01, the Appellant was engaged in the business of export of steel utensils and allied products, pressure cookers, terry towels, tooth paste and man other small items to Indonesia, Panama, Fiji, and other countries, and it ha .....

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poration Rs.27,14,624/- 7 M/s Kothari Products Rs.84, 74, 754/- 8 M/s Samarth Enterprises Rs.69,15,800/- Total Rs.3,79,00,113/- 3. Respondent No.1 disallowed the said purchases on the ground that the appellant could not prove the genuineness thereof as confirmation from the said parties were obtained on the ledger account copies without giving their Permanent Account numbers. 4. Hon'ble Commissioner of Income-tax (Appeals) - IX, vide his order dated 20.2.2004 gave relief of 75 percent of the .....

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r in Audit report submitted along with the appellant's return of income and in the prescribed Form No.3CB vide Note No.3 has reported that the appellant had paid excessive remuneration in excess of limits prescribed under the Company's Act amounting to ₹ 36,40,038/for which the appellant made an application to the Central Government and the approval was awaited. Had the aforesaid excessive remuneration been considered as recoverable, from the Directors, loans and advances would hav .....

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Before proceeding further, for the sake of convenience and ready reference, relevant part of provision of section 309 of Companies Act 1962 is reproduced as under: (5A) If any director draws or receives, directly or indirectly, by way of remuneration any such sums in excess of the limit prescribed by this section or without the prior sanction of the Central Government, where it is required, he shall refund such sums to the company and until such sum is refunded, hold it in trust for the company. .....

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s. 7. When the matter was carried in appeal before the CIT(A), she vide her order dated 24.1 0.2008 gave relief of 75% of the total purchases from the said 8 parties. 8. When the matter was carried in appeal before the Tribunal, the Tribunal in its order dated 9th September, 2010 gave finding on page 11 of its order (page 117 of the appeal Paper-Book) that the assessee has made no attempts to utilise the opportunity afforded by the Tribunal, without considering the fresh confirmation letters fil .....

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