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Shri Dilip B. Shah Versus ITO-14 (1) (1) , Mumbai

2017 (12) TMI 573 - ITAT MUMBAI

Accommodation entry/bogus purchases - Reopening of assessment - Held that:- The credibility of information relating to reopening remains un-assailed. In such factual scenario, the assessing officer has made the necessary enquiry. The issue of notice to all the parties have returned unserved. Assessee has not been able to provide any confirmation from any of the party. Assessee has also not been able to produce any of the parties. Necessary evidence relating to transportation of the goods was als .....

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rned unserved. Assessee has not been able to produce any of the parties. Neither the assessee has been able to produce any confirmation from these parties. In such circumstances, there is no doubt that these parties are non-existent. We find it further strange that assessee wants the Revenue to produce assessee’s own vendors, whom the assessee could not produce. The purchase bills from these non-existent/bogus parties cannot be taken as cogent evidence of purchases. Thus the Revenue authorities .....

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decisions. - Decided against assessee. - I.T.A. No.5560/Mum/2016 - Dated:- 4-12-2017 - SHRI SHAMIM YAHYA, AM AND SHRI SANDEEP GOSAIN, JM For The Appellant : Ms. Ruchi M. Rathod For The Respondent : Shri Ram Tiwari ORDER Per Shamim Yahya, A. M.: This Appeal by the assessee directed against the Order by the Commissioner of Income Tax (Appeals)-29, Mumbai dated 19.07.2016 and pertains to the assessment year (A.Y.) 2009-10. 2. The issue raised is that ld. Commissioner of Income Tax (Appeals) erred .....

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ies which contrary to the material fact on record and more particularly is contrary to the provisions of Section 69C since the source is in dispute and not the purchase expenditure. 3. In this case, the return of income was filed on 16.09.2009 declaring total income at ₹ 8,13,210/-. The Assessing Officer in the assessment order has stated that assessment in this case was initiated on the basis of information received from the office of DGIT(Inv.), Mumbai. The information was that the sales .....

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19,757/- ACZPV3215F Skand Industries 5,87,166/- AACCM1443M Newspark Trading Co. P. Ltd. 7,21,062/- AGNPM5002H P M Udyog 6,21,718/- AHUPK6877A Siddhi Enterprises 15,42,646/- ALXPM4040Q Jasmine Enterprises 10,26,917/- ALMPK4643E Vani Enterprises 27,38,014/- Assessing Officer after issuing notice u/s.148 had asked the assessee to furnish the details regarding goods purchased from the party, copies of bills raised, ledger account of the party, documentary evidences such as transportation bills, bank .....

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bouts of the parties. The assessee confirmed that it has sold the goods which have been purchased from the alleged hawala dealers and has realized the sale proceeds. Therefore, it was pleaded that the purchases have to be treated as genuine. The Assessing Officer however, relying on the decision of the Hon'ble ITAT, Ahmedabad in the case of Vijay Proteins worked out the peak credit for the purchases made from the alleged hawala parties. The peak credit worked out to ₹ 90,13,127/- which .....

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The appellant has miserably failed to do so and therefore agreed for the GP addition. It is not a case where the appellant was forced or coerced into making the addition. If the appellant had any kind of evidence in his possession, he would have certainly flashed it before the AO. In 'these circumstances, the agreement for addition of GP by the appellant has to be taken seriously. 4.3.1. The Hori'ble ITAT, Ahmedabad VC' Bench in the case of Vijay Proteins Ltd. vs. ACIT 58 ITD 0428 h .....

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le High Court has upheld the decision of CIT(A) and the ITAT disallowing 25% of the payments made to such parties. The Hon'ble High Court of Gujarat in the case of CIT vs. Simit P. Sheth 356 ITR 0451 held that once the sale is accepted by the AO, the very basis of purchases could not be questioned. Not the entire purchase price could be disallowed but only the profit element embedded in such purchases could be added to the income of the assessee. The estimation varies with the nature of busi .....

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ion entry provider/bogus suppliers were being used by certain parties to obtained bogus bills. The assessee was found to have taken accommodation entry/bogus purchase bills during the concerned assessment year from different parties. Based upon this information assessment was reopened. The credibility of information relating to reopening remains un-assailed. In such factual scenario, the assessing officer has made the necessary enquiry. The issue of notice to all the parties have returned unserv .....

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its enquiry has found the parties to be providing bogus accommodation entries. The assessing officer also issued notices to these parties at the addresses provided by the assessee. All these notices have returned unserved. Assessee has not been able to produce any of the parties. Neither the assessee has been able to produce any confirmation from these parties. In such circumstances, there is no doubt that these parties are non-existent. We find it further strange that assessee wants the Revenue .....

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case, the assessee wants that the unassailable fact that the suppliers are non-existent and, thus, bogus should be ignored and only the documents being produced should be considered. This proposition is totally unsustainable in light of Hon ble Apex Court decisions. 8. We further find that Hon'ble jurisdictional High Court in the case of Nikunj Eximp Enterprises (in Writ petition no 2860, order dt. 18.6.2014) has upheld 100% allowance for the purchases said to be bogus when the sales have n .....

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to be added in the hands of the assessee and tribunals restriction of the addition to 25% of the bogus purchases was set aside. It was expounded that when purchase bills have been found to be bogus, 100% disallowance was required. The special leave petition against this order along with others has been dismissed by the Hon ble Apex Court vide order dated 16.1.2017. 10. We further note that Hon ble Rajasthan high court has similarly taken note of decisions of the apex court on the issue of bogus .....

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