TMI Blog2018 (10) TMI 1341X X X X Extracts X X X X X X X X Extracts X X X X ..... Hon’ble Apex Court does not merge the dismissal of the SLP into the order of the Hon’ble Apex Court. Accordingly, in our considered opinion, the order passed by the ld. CIT is liable to be quashed As held in the case of Malabar Industrial Co. Ltd. vs. CIT [2000 (2) TMI 10 - SUPREME COURT] if there are two views possible and the A.O. has adopted one view, with which the ld. CIT is not in agreement, the order cannot be said to be liable to be visited with the revisionary order by the ld. CIT. Accordingly, the order under 263 passed by the ld. CIT is hereby quashed. - Decided in favour of assessee. - I.T.A. No.2681/Mum/2018 - - - Dated:- 6-9-2018 - Shri Shamim Yahya, AM And Shri Pawan Singh, JM For the Appellant : Shri S. L. Jain ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urchases are duly reconciled with the corresponding sales effected, and complete stock records are maintained. 4. Ld. Pr. CIT erred in placing reliance in para 8 on certain judicial pronouncements which does not support the conclusion that 100% of the purchases be disallowed when sales are effected out of the purchases. 5. Appellant pray that order as passed by 263 be cancelled. 3. Brief facts of the case are that during the year A.Y. 2010-11 relevant to F.Y. 2009- 10 the assessee had made purchase of ₹ 14,97,817/- which were held to be bogus by obtaining only bills from three parties without actual purchase of goods. During finalization of scrutiny proceedings, the Assessing Officer had not found the explanation offered by t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... disallowance of 12.50% of the bogus purchase. It is noted here that the A.O. has not drawn any adverse inference whatsoever on the genuineness of the sale. In the order passed u/s. 263 of the Act, the ld. CIT also did not at all make any whisper about the verification of the genuineness of the sales. He referred to the catena of the deficiency in the purchase documentation and referred to the decision of the N K Industries (supra) of the Hon ble Gujarat High Court, wherein 100% disallowance of bogus purchase was to be done. Hence, the ld. CIT invoked his power u/s. 263 of the Act and set aside the order of the A.O. to be done afresh. 7. Firstly, we note that de hors any examination or adverse inference on the sales, 100% disallowance ..... X X X X Extracts X X X X X X X X Extracts X X X X
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