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ITO Ward – 1 (1) , Kalyan (W) Versus M/s. Elcon Pipes & Fittings Pvt Ltd.

2017 (10) TMI 523 - ITAT MUMBAI

Bogus purchases - G.P. determination - Held that:- When sales are not doubted hundred percent disallowance for bogus purchase is not possible. This has been so held by honourable jurisdictional High Court in the case of Nikunj Eximp enterprises [2013 (1) TMI 88 - BOMBAY HIGH COURT]. However we also note that facts of the case before the jurisdictional High Court were different from that in the present case. Facts of the present case clearly indicate that assessee has engaged in transaction in th .....

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ase should be made at the rate of 12.5% of the bogus purchase - ITA No.5355/Mum/2016 And 5357/Mum/2016, ITA No.5689/Mum/2016 And 5692/Mum/2016 - Dated:- 18-8-2017 - SHRI SHAMIM YAHYA, ACCOUNTANT MEMBER AND SHRI SANDEEP GOSAIN, JUDICIAL MEMBER For The Assessee : Ms. Pooja Swaroop For The Revenue : Shri. Ajay Singh ORDER PER BENCH: These are cross appeals by assessee and revenue against common order of CIT-A dated 30/06/2016 for the above assessment years. 2. These cases involve bogus purchases. T .....

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ving as under. For A.Y. 2009-10, learned CIT-A has held as under:- By booking alleged bogus purchases, as compared to the A.Y. 2007-08, the appellant has suppressed its profit by ₹ 8,10,8347- ( 87,56,313x 9.26%). In compliance, the Ld. AR could not offer any valid reasons for fall in the GP rate. Considering the facts in entirety / the appellant being wholesale trader and relying on decisions in the case of M/s. Kanchwala Gems Pvt. Ltd. V/s JCIT 288 ITR 10 (SC), Simit P Seth, 356 ITR 451, .....

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ereby deleted. For A.Y.2011-12, the learned CIT-A has held as under:- By booking alleged bogus purchases, as compared to the A.Y. 2007-08, the appellant has suppressed its profit by ₹ 13,49,822/- (1,00,88,359 x 13.38%). In compliance, the Ld. AR could not offer any valid reasons for fall in the GP rate. Considering the facts in entirety / the appellant being wholesale trader and relying on decisions in the case of M/s. Kanchwala Gems Pvt. Ltd. V/s JCIT 288 ITR 10 (SC), etc, as quoted above .....

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Against the above order of learned CIT(A) revenue and assessee are in cross appeal. 4. We have heard both the counsel and perused the records. 5. We find that in this case overwhelming evidence have been brought on record that the concerned purchase are bogus. Cogent information has been received from the Maharashtra sales tax Department that the suppliers have admitted that they were supplying bogus bills. The assessing officer also has also made enquiries. No response to his notices came from .....

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