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2019 (10) TMI 384

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..... the case of the present assessee is distinguishable from the case laws relied on by the Ld. DR. Considering the entirety of facts and circumstances of the case, we find that the Ld. CIT(A) has rightly restricted the disallowance to the peak of purchases of ₹ 31,50,000/- taken as an alternate ground by the assessee. Thus we confirm the order of the Ld. CIT(A). - Decided against revenue - ITA No. 2312/MUM/2018 - - - Dated:- 31-7-2019 - Shri Saktijit Dey (Judicial Member) And Shri N.K. Pradhan (Accountant Member) For the Assessee : None For the Revenue : Mr. Chaudhary Arun Kumar Singh, DR ORDER PER N.K. PRADHAN, AM This is an app .....

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..... ndisclosed income could not be restricted to certain percentage when the entire transaction was found as bogus'. 3. Briefly stated, the facts are that the assessee filed his return of income for the assessment year (AY) 2011-12 on 30.09.2011 declaring total income of ₹ 5,07,610/-. The assessee is engaged in trading in computer system, assembled systems and peripherals etc. in the name and style of his proprietary concern M/s Infocom Technologies/S.N. Enterprises. During the course of assessment proceedings, the AO observed that as per the information received from the Sales Tax Department, Government of Maharashtra the assessee has obtained bogus purchase bills from the following two parties : .....

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..... he reply to it has been extracted by the AO in the assessment order dated 10.03.2014. The AO was not convinced with the reply of the assessee for the reason that in spite of request, the assessee failed to produce either of the two parties before him for examination except stating that the purchases and sales are genuine. Relying on the statements and findings of the Sales Tax Department, Government of Maharashtra coupled with the fact that the notices issued by him u/s 133(6) to the said two parties were returned un-served by the postal authorities, the AO made an addition of ₹ 85,08,600/- u/s 69C of the Act. 4. Aggrieved by the order of the AO, the assessee filed an appeal before the Ld. CIT(A). In .....

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..... 5. Before us, the Ld. DR relies on the decision in N K Proteins Ltd. v. CIT (2017-TIOL-23-SC-IT), N K Proteins Ltd. v. CIT (2016-TIOL-3165- HC-AHM-IT), CIT v. Arun Malhotra 47 taxmann.com 385 (Delhi)/[2014] 363 ITR 195, Vijay Proteins Ltd. v. ACIT [2015] 58 taxmann.com 44 (Gujarat), CIT v. La Medica [2001] 117 Taxman 628 (Delhi)/[2001] 250 ITR 575 (Delhi)/[2001] 168 CTR 314 (Delhi), Udit Kalra v. ITO Ward 50(1) of Hon ble Delhi High Court ITA No. 220/2019 CM No. 10774/2019 dated 08.03.2019, Pr. CIT (Central)-1 v. NRA Iron Steel Pvt. Ltd. Civil Appeal No. of 2019 (Arising out of SLP (Civil No. 29855 of 2018) Supreme Court recent decision dated 05th March 2019, Pr. CIT-6, New Delhi v. NDR Promoters Pvt. Ltd. ITA 49/2018 of Hon ble D .....

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