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TMI Blog2018 (5) TMI 349X X X X Extracts X X X X X X X X Extracts X X X X ..... sed on enquiry conducted by DGIT(Inv.) Mumbai, as per the list on the Maharashtra Sales Tax Website, were hawala dealers and providing accommodation bills. (ii) The Ld. CIT (A) has erred on facts and in law, in allowing deduction in respect of amount of addition on account of bogus purchases as the parties from whom purchases were made were hawala dealers and the absolute burden of proof is cast on the assessee and this burden of proof never shifts to the Department. (iii) The Ld. CIT (A) has erred on facts and in law without appreciating that this being a case of utter disregard and subversion of law, burden of proof cast on the assessee was of a very high degree and assessee failed to discharge this burden. (iv) The Ld. CIT (A) has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the business of providing accommodation bills as per averments of the sales tax department. The facts that the assessee submitted the bills without any supporting documents coupled with the fact that the parties are considered to be involved in the business of issuing accommodation bills as per the averments of the sales tax department, this proves that the above purchases are not genuine and they have been booked only to reduce the profit and evade tax. In view of the above, I am satisfied that the assessee has escaped income to the extent of Rs. 70,25,711/- within the meaning of section 147 of the Income Tax Act, 1961." 5. In response, the assessee submitted that the assessee has purchased the above material through broker from f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... issioner of Income Tax (Appeals) held that the assessee has supplied all the necessary documents, hence placing reliance upon the Hon'ble Bombay High Court decision in the case of Nikunj Eximp Enterprises (in writ petition no 2860, order dt. 18.6.2014) and several other ITAT decision, he deleted the addition. 7. Against the above order, the Revenue is in appeal before us. 8. 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 accommodation entry provider/bogus suppliers were being used by certain parties to obtained bogus bills, assessee was found to have taken accommodation entry/bogus purchase bills during the concerned a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s from these non-existent the/bogus parties cannot be taken as cogent evidence of purchases, in light of the overwhelming evidence the revenue authorities cannot put upon blinkers and accept these purchases as genuine. This proposition is duly supported by Hon'ble Apex Court decision in the case of Sumati Dayal 214 ITR 801 and Durga Prasad More 82 ITR 540. 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 above apex court decisions. 10. In these circumstances learned departmental representative has referred to Hon'ble Gujarat High Court decisio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of law pronounced in the aforesaid three judgments. 12. In the background of the aforesaid discussion and precedent we are of the considered opinion that the ld. Commissioner of Income Tax (Appeals) has erred in granting 100% relief to the assessee. We further find sales in these cases are not doubted. When sales are not doubted, 100% disallowance for bogus purchase is not sustainable as per the decision of the Hon'ble jurisdictional High Court in the case of Nikunj Eximp Enterprises (in writ petition no 2860, order dt. 18.6.2014). However, the facts of that case were different inasmuch as sales were to the Government department. However the facts and circumstances of the present case indicate that assessee has engaged into dealings in th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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