TMI Blog2017 (10) TMI 822X X X X Extracts X X X X X X X X Extracts X X X X ..... impugned assessment years. Therefore, ground no.1 in all these appeals of the assessee are dismissed. Bogus purchases addition - Held that:- It is evident that the assessee was unable to prove the genuineness of purchases conclusively by producing documentary evidences such as transportation bills, delivery challans, lorry receipts, etc., to prove actual delivery of goods at its premises. Further, the notices issued under section 133(6) of the Act to the concerned parties also returned un–served. Moreover, the assessee also failed to produce the concerned parties before the Assessing Officer or confirmations from any such parties. In these circumstances, the disputed purchases cannot be accepted as genuine. However, the Assessing Office ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s is in relation to addition made on account of alleged bogus purchases. 4. Brief facts are, the assessee an individual is engaged in the business of trading of ferrous and non ferrous metals through his proprietary concern Sunil Metals. On the basis of information available with the Assessing Officer that certain purchases made by the assessee in each of the assessment years are not genuine, the Assessing Officer re opened the assessment under section 147 of the Act. In the course of assessment proceedings, the Assessing Officer noted that DGIT (Inv.) on the basis of information received from Sales Tax Department found that some dealers were providing accommodation bills / invoices without actually supplying the goods physically. As per ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the same time, the Assessing Officer found that the details of allocation of raw materials to sale of finish goods are available with the assessee. From the aforesaid facts, the Assessing Officer concluded that the assessee had not purchased goods from the concerned parties but might have purchased the goods from some other sources on payment of cash and to regularize the transaction has obtained accommodation bills from hawala operators. Thus, on the basis of aforesaid facts, the Assessing Officer ultimately proceeded to estimate income at 12.5% of the bogus purchases in all the impugned assessment years and made additions accordingly. Being aggrieved of the additions made by the Assessing Officer, the assessee preferred appeals before th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... resentative and perused the materials on record. At the outset, we propose to deal with ground no.1 raised by the assessee challenging re opening of assessment for the impugned assessment years. As could be seen, in the impugned assessment year, though, the assessee had filed its return of income voluntarily, however, no assessments under section 143(3) of the Act have been made. Subsequently, the Assessing Officer was in possession of specific information that certain purchases made by the assessee were not genuine as they were effected from hawala operators. Thus, as could be seen, there was tangible material before the Assessing Officer to form his belief that income has escaped assessment. That being the case, the Assessing Officer has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ivery challans, lorry receipts, etc., to prove actual delivery of goods at its premises. Further, the notices issued under section 133(6) of the Act to the concerned parties also returned un served. Moreover, the assessee also failed to produce the concerned parties before the Assessing Officer or confirmations from any such parties. In these circumstances, the disputed purchases cannot be accepted as genuine. However, the Assessing Officer has recorded a finding of fact that consumption of material to sales have been proved which pre supposes that the goods might have purchased from some undisclosed sources and to regularlse them assessee has obtained accommodation entries. In these circumstances, the normal gross profit rate as adopted by ..... X X X X Extracts X X X X X X X X Extracts X X X X
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