TMI Blog2017 (8) TMI 118X X X X Extracts X X X X X X X X Extracts X X X X ..... ale which he might have purchased from grey market. It is common presumption which has not be rebutted by the Revenue. Hon’ble Supreme Court in the case of Kanchwala Gems (2006 (12) TMI 83 - SUPREME COURT) wherein Hon’ble Supreme Court has held that the disallowance of bogus purchases is to be restricted to certain percentage of profit, wherein it is held that the purchases from grey market is made. Accordingly, we direct the AO to apply net profit rate @ 8% of the bogus purchases made by the assessee and recompute the income accordingly. These appeals of the assessee are partly allowed. - ITA No. 3439, 3440, 3441/Mum/2016 - - - Dated:- 31-5-2017 - Sri Mahavir Singh, JM And Sri Rajesh Kumar, AM Assessee by : Shri. Dr. P Daniel, AR ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wing parties are reads as under: - 6. The AO received information from Director General of Income Tax (DGIT in short) (Investigation), who in turn received information from Sales Tax Department Maharashtra Government giving the name, addresses and other details of certain persons, who were entry providers for purchase of bogus bills to a large number of tax payers. The above said parties are included in the list prepared by Sales Tax Department. The Sales Tax Department of Maharashtra Government gathered this information that these hawala dealers are only providing bogus bills on papers and no actual goods ae transacted in these transactions. They also admitted that they received payment by cheques but return the money to these part ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Hon'ble Supreme Court in the case of M/s Kanchwala Gems Vs JCIT, 288 ITR 10 (SC), Sri Ganesh Rice Mills Vs. CIT 294 ITR 316 (Alt) etc. as quoted above, wherein on account of similar set of circumstances, the estimation of profit was held, as justified. Since the suppression of profits, during the years under appeals, are more than the disallowance of hawala purchases, therefore, the entire disallowances of bogus purchases are liable to be sustained. In view of these facts, the disallowance of 100% hawala purchases, i.e. ₹ 10,25,754/-, ₹ 3,29,316/- ₹ 2,41,795/-, as against total turnover of ₹ 4,73crs., ₹ 7.63Crs. Rs.8.83Crs., in these years, in my considered opinion, is fully justified, in the appell ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
