TMI Blog2019 (1) TMI 793X X X X Extracts X X X X X X X X Extracts X X X X ..... bogus purchases in the hands of the assessee. We find the impugned order is reasoned and hence, requires no interference. Taking into consideration entirety of facts, the impugned order is upheld. - ITA No.2076/PUN/2016, C.O. No.58/PUN/2018 - - - Dated:- 31-12-2018 - Shri D. Karunakara Rao, AM And Shri Vikas Awasthy, JM For the Assessee : Shri K. Srinivasan For the Revenue : Ms. Sabhana Parveen ORDER PER VIKAS AWASTHY, JM : This appeal by the Revenue is directed against the order of Commissioner of Income Tax (Appeals)-1, Aurangabad dated 27-06-2016 for the assessment year 2009-10 in restricting the addition on account of the bogus purchases to 3% of the total bogus purchases. The assessee has filed cross object ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Sr.No. Name of hawala dealer from whom purchases made Amount 1 Samco Steel Alloys, Prop. Shri Shankarlal Narsingmal Jain Rs.26,04,992/- 2 M/s. Rajratan Metal Industries Rs.51,32,946/- 3 M/s. Anmol Industries Rs.19,10,064/- 4 M/s. Manav Impex Rs.36,53,286/- 5 M/s. Alliance Steel Industries Rs.1,45,54,696/- Total Rs.2,78,55,984/ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re bogus purchases. The assessee has taken accommodation entries from the dealers merely to reduce the profits. The ld. Departmental Representative prayed for setting aside the impugned order and restoring the findings of the Assessing Officer. 5. On the other hand, Shri K. Srinivasan, appearing on behalf of the assessee submitted that the Assessing Officer has erred in coming to the conclusion that the assessee has indulged in procuring accommodation entries. The ld. Authorized Representative pointed that in scrutiny assessment proceedings the assessee had furnished complete set of books along with supporting sale bills, purchase bills, bank statements, vouchers etc., and the same were test checked by the Assessing Officer before passin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iate movement of goods from the suppliers to the assessee. The Assessing Officer during assessment proceedings has not discarded total sales of the assessee. In other words, the sales of the assessee have been accepted by the Department. Without purchases, there cannot be sales. Thus, entire alleged bogus purchases cannot be added in the hands of the assessee. Under such circumstances, the possibility of assessee purchasing the goods from grey market and procuring bills from the Hawala dealers cannot be ruled out. The CIT(A) after considering catena of judgments on various facets including the GP ratio to be applied in different set of industries estimated 3% of GP addition on account of bogus purchases in the hands of the assessee. We find ..... X X X X Extracts X X X X X X X X Extracts X X X X
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