TMI Blog2018 (5) TMI 351X X X X Extracts X X X X X X X X Extracts X X X X ..... ed:- 2-5-2018 - SHRI SHAMIM YAHYA, AM AND SHRI RAM LAL NEGI, JM For The Revenue : Shri V. Justin For The Assessee : Shri Tanjil Padvekar ORDER Per Bench: These are cross appeals by the assessee and Revenue for assessment years 2009-10 and appeal by the assessee for assessment year 2010-11, arising out of the common order of the ld. Commissioner of Income Tax (Appeals) for these assessment years dated 26.08.2016. In assessee s appeal: 2. The first common issue raised in the assessee s appeal relates to validity of reopening u/s. 147 of the Act. At the outset, the ld. Counsel of the assessee submitted that he shall not be pressing for this ground, hence, ground relating to the validity of reopening is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... K Tradelink 1316178 288688 6 M R Corporation 482027 - 7 Marshal Enterprises 326040 - 8 Mahavir Enterprises 205148 - 9 Sun Enterprises 456186 184704 10 Somnath International 775258 566514 11 Shradhha Trading Co 507109 -- 12 Ami Traders 474 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eness of the above purchases. The assessee however, contended that he was engaged in the business of manufacturing and sale of electric resistance, and the raw material purchased from these parties was used in the manufacturing of goods. In order to verily the genuineness of purchases, the Assessing Officer issued letters u/s 133(6) of the Act to all the above referred parties, however, the notices were returned un-served, without being served. These parties had admitted before the Government authorities (S. T Department), that they were issuing bills, without effecting sales or purchases, nor given / taken physical delivery of goods. The Assessing Officer observed that since the assessee failed to furnish the confirmed copies of ledger acc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessment year from different parties. Based upon this information assessment was reopened. The credibility of information relating to reopening remains unassailed. Furthermore it is noted that in such factual scenario 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. The necessary evidence for transportation of goods have not been provided by the assessee. In this factual scenario it is amply that assessee has obtained bogus purchase bills. Mere preparation of documents for purchases cannot controvert overwhelming evidence that the provid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of N K Industries vs Dy CIT, order dated 20.06.2016, wherein hundred percent of the bogus purchases was held 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. 13. We further note that Hon ble Rajasthan high court has similarly taken note of decisions of the apex court on the issue of bogus purchases in the case of CIT Jaipur vs Shruti Gems in ITA No. 658 of 2009. The Hon ble High Court has referred to the decision of CIT Jaip ..... X X X X Extracts X X X X X X X X Extracts X X X X
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