TMI Blog2017 (8) TMI 847X X X X Extracts X X X X X X X X Extracts X X X X ..... t profit at 12.5% on the alleged bogus purchases. Appeal filed by the assessee is partly allowed - I.T.A.No. 1563/Mum/2015 And I.T.A.No. 1987/Mum/2015 - - - Dated:- 31-7-2017 - Mahavir Singh (JUDICIAL MEMBER) AND Shri G Manjunatha (ACCOUNTANT MEMBER) For The Assessee : Shri Rajesh Kumar Yadav For The Respondent : Ms Aastha Shah ORDER Per G Manjunatha, AM : These cross appeals filed by the assessee and revenue are directed against the order of the CIT(A)-40, Mumbai dated 07-01-2015 and they pertain to assessment year 2009-10. Since facts are identical and the issues are also common, for the sake of convenience, these appeals were heard together and are disposed of by this common order. 2. The brief facts of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd bank statement. The AO, after considering the explanations of the assessee held that though assessee has furnished certain evidences, but failed to rebut the allegations made in the backdrop of the clear-cut findings of Maharashtra Sales-tax department coupled with further independent enquiries conducted by this office clearly indicated that the purchases made from those parties are bogus in nature and hence, made addition towards total purchases made from those parties for an amount of ₹ 4,56,72,468. 3. Aggrieved by the assessment order, assessee preferred appeal before CIT(A). Before CIT(A), assessee reiterated her submissions made before the AO. The assessee further submitted that purchases from those parties are genuine in n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Ltd 58 ITD 428 directed the AO to estimate profit at 15% on the alleged bogus purchases. Aggrieved by the order of CIT(A), the assessee as well as the revenue are in appeal before us. 5. The assessee has raised two legal grounds challenging the validity of reopening of assessment u/s 147 and also legality of the assessment order framed in the name of legal heir of the assessee without following due process of law to bring the legal heir into the proceedings. During the course of hearing, the Ld. AR for the assessee submitted that she did not want to press the legal grounds challenging the validity of re-assessment and legality of assessment framed on the legal heir. Hence, these grounds raised by the assessee are dismissed, as not press ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s purchases. Relevant part of the order is extracted below: 9. We have heard both the parties and perused materials available on record and also gone through the orders of authorities below. The AO disallowed purchases from two parties, viz. M/s Rushabh Enterprises and M/s Swastik Enterprises, on the basis of list of hawala operators published by Maharashtra Sales-tax Department which contained the name of above parties. The notices sent to these parties were returned unserved by postal authorities with remark, no such parties are existed at the given address . Under these circumstances, the AO was of the opinion that the assessee failed to discharge onus cast upon it to prove the purchases with necessary evidence. The AO further wa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e is no difference in stock details. Though the assessee has produced certain details to prove the purchases from the said parties, in view of the fact that the assessee could not prove the existence of the parties and also could not rebut the finding of Maharashtra State Sales-tax department that the parties were hawala operators, involved in providing accommodation entries, the purchases from the said parties cannot be accepted as genuine. But keeping in view the fact that the AO had not doubted sales declared by the assessee, a reasonable inference can be drawn that the assessee has purchased goods from the grey market and obtained bills from these parties to cover up the purchases. Therefore, under these facts and circumstances, what ne ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
