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Asstt. Commissioner of Income Tax-14 (2) (2) , Mumbai Versus M/s Premier Industrial Corporation Ltd. And Vice-Versa

2017 (10) TMI 529 - ITAT MUMBAI

Bogus purchases - assessee has availed hawalas entries - Held that:- As find that the assessee has availed hawalas entries in respect of purchases to the tune of ₹ 2,91,48,000/-. But in such type of cases, the assessee purchases good from gray market at cheaper rates thus gets additional benefit by avoiding VAT, and other in levies. The assessee has already declared GP 18.21% during the year. Under these circumstances we are of the considered opinion that the addition sustained at the rate .....

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he assessee is partly allowed. - ITA NO.2110/Mum/2015 And ITA NO.2201/Mum/2015 - Dated:- 29-9-2017 - SHRI C.N. PRASAD, JM AND SHRI RAJESH KUMAR, AM For The Revenue : Shri Arju Garodia For The Assessee : Shri Ajay Singh ORDER PER RAJESH KUMAR, A. M: These are cross-appeals pertaining to assessment year 2011-12 and are directed against the order of the CIT(A)-22, Mumbai, dated 23.1.2015 which in turn has arisen from an order passed by the Assessing Officer dated 19.3.2014 under section 143(3) of t .....

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ct. Thereafter the case was selected for scrutiny and the statutory notices u/s 143(2) and 142(1) were issued and served upon the assessee. The assessee is engaged in the business of manufacturing and processing of ferro and metal alloys and manufacturing nickel alloys and stainless steel wires. The AO received the information from the DGIT(Inv), Sales Tax Department, Government of Maharashtra that the assessee has obtained accommodation entries for purchase through the parties declared as hawal .....

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e details of purchases, copies of ledger accounts and bank statements, bills and vouchers and transport receipt and delivery challans etc. The AO, after considering the reply filed by the assessee, was of the opinion that the assessee could not prove the genuineness of the purchases and evidences of consumption of materials in the manufacturing of goods. The confirmation of these parties were also not filed and accordingly the AO added the entire purchases to the total income of the assessee and .....

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had purchased goods from M/s Suraj Steel India for ₹ 1,38,49,500/- and M/s Pooja and Alloys for ₹ 1,52,98,500/- totaling to ₹ 2,91,48,000/-. The AO treated the above purchase as bogus in nature as AO had received information from Investigation wing. But the purchaser. The appellant in its submissions states that AO had failed to appreciate the documents from the parties ledger accounts, bank statements, details of bills, etc copies of invoice against the transport bills and de .....

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22 (Gujarat) wherein it is held as under: The entire Issue is based on materials on record. The Tribunal did not accept the revenue's stand that the purchases were bogus. The Tribunal committed no error so as to give rise to any question of law. The Tribunal looking to the material retained 5% of the purchase by giving cogent reasons. In the instant case, though it may appear that the purchases have been shown to have been made through V but supplied by some other agency, in absence of othe .....

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the present year compared to the earlier years of the recent past. Under the circumstances no question of law arises. 3.4 When we examined the above case law of the Gujarat HC who had upheld he taxation of 25% of the amount of bogus purchase as taxable income. Here the appellant declared the net profit @3%, so 22% of bogus purchase may be treated as disallowable amount. Hence, AO may disallowed 22% of bogus purchase amount as taxable profit. Hence ground of appeal is partly allowed. 5. We have .....

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