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2017 (12) TMI 573

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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cannot put upon blinkers and accept these purchases as genuine. This proposition is duly supported by case of Sumati Dayal vs. CIT [1995 (3) TMI 3 - SUPREME Court] and CIT vs. Durga Prasad More [1971 (8) TMI 17 - SUPREME Court]. In the present 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 .....

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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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statements and so on. The assessee was asked to produce the principal persons of the impugned parties which the assessee failed to do so. The assessee filed ledger account of all the parties and copy of his bank statements reflecting the payments made to these parties. No evidence of transportation of goods required by the Assessing Officer were furnished. The assessee further admitted that the concerned parties are not available at their last known addresses nor does he know the current wherea .....

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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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ness and no uniform yardstick could be adopted. Given the facts and circumstances of the instant case, I find it reasonable to estimate the profit at 12.5% of the alleged purchases of ₹ 1,93,20,247/-. 5. Against the above order of ld. Commissioner of Income Tax (Appeals), the assessee is in appeal before the ITAT. 6. We have heard both the counsel and perused the records. We find that credible and cogent information was received in this case by the assessing officer that certain accommodat .....

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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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ot been doubted. However, the facts of that case were different. Furthermore, the sales in that case were basically to government departments. Hence, the ratio from this decision is not applicable on the facts of the case. 9. In these circumstances, the learned Departmental Representative has referred to Hon ble Gujarat High Court decision in the case of Tax Appeal No. 240 of 2003 in the case of N K Industries vs. Dy. CIT vide order dated 20.06.2016, wherein 100% of the bogus purchases was held .....

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he order dated 09.12.2014 passed by the Gujarat High Court and other decisions of the High Court of Gujarat in the case of Sanjay Oilcake Industries Vs. Commissioner of Income Tax (2009) 316 ITR 274 (Guj) and N.K. Industries Ltd. Vs. Dy. C.I.T., Tax Appeal No.240/2003 decided on 20.06.2016, the parties are bound by the principle of law pronounced in the aforesaid three judgments. 11. However, we note that this is not an appeal by the Revenue. Hence, it will not be appropriate to take away the re .....

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