TMI Blog2017 (6) TMI 1186X X X X Extracts X X X X X X X X Extracts X X X X ..... of order passed u/s.143(3) r.w.s.147 of the IT Act. 2. The following grounds have been taken by the assessee:- 1. On the facts and circumstances of the case and in law, the CIT(A) erred in partially upholding the action of the AO in making an addition of ₹ 51 ,08,901/- u/s 69C of the Act being alleged bogus purchases from alleged hawala dealers by confirming the same at 25% of the original addition amounting to ₹ 12,77,226/-. 2 On the facts and circumstances of the case and in law, the CIT(A) erred in confirming the chargeability of Interest u/s 234A, 234B 234C. 3. The following grounds have been taken by the revenue:- 1.1 Whether on the facts and in the circumstances of the case, and in law, the Hon'ble CIT ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... parties had stated on oath before them that they have merely provided entries to the beneficiaries and no goods were actually delivered by them. The AO, therefore, concluded that the assessee had suppressed the income to the extent of ₹ 51,08,901/-, by debiting these bogus bills, in the Profit Loss account. Accordingly, a notice u/s. 148 of the I.T. Act, 1961, was issued, after recording reasons to believe that the income of the assessee, for A.Y.2010-11, has escaped the assessment. During the course of re-assessment proceedings, in order to justify the genuineness of purchases, the notices u/s.133(6) of the I.T. Act, 1961, were issued on given addresses, but returned back unserved with a remark not known . In view of these facts, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s made sales in respect of alleged bogus purchases, therefore, it is not a case where entire amount has been siphoned off by way of obtaining bogus purchases. Therefore, after applying the judicial pronouncements by Gujarat High Court in case of Sanjay Oil Cake Industries 316 ITR 274 and Vijay Proteins Ltd., 58 ITD 428 restricted the addition to the extent of 25%. 9. It was the contention of learned AR that facts of Sanjay Oil Cake Industries (supra) were entirely different. Our attention was invited to the ledger account of all the suppliers in the assessee‟s books, invoice issued by them, relevant extract of the bank statement showing payment made in respect of purchases made from these parties. Our attention was also invited to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... disallowance @25% is on higher side and accordingly, I reduce the addition to 12.5% of such bogus purchase. Thus, the disallowance in the assessment year 2009-10 is sustained to the extent of 12.5% of ₹ 37,53,464/- and in the assessment year 2011-12 @12.5% of ₹ 17,98,936/-. Thus, ground No. 1 in both the years is partly allowed. 11. As the facts and circumstances during the year under consideration are parametria, respectfully following the order of the Tribunal in assessee‟s own case, we direct the AO to restrict the addition to the extent of 12.5%. 12. In the result, appeal of Revenue is dismissed whereas appeal of assessee is allowed in part. Order pronounced in the open court on this 05/06/2017 - - TaxTMI ..... X X X X Extracts X X X X X X X X Extracts X X X X
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