TMI Blog2019 (12) TMI 450X X X X Extracts X X X X X X X X Extracts X X X X ..... (Appeals) 1, Mumbai [hereinafter in short Ld.CIT(A) ] dated 21.08.2018 for the A.Y. 2009-10 and A.Y. 2010-11 respectively in restricting the disallowance to 5% of the purchases as against entire purchases disallowed as non-genuine/bogus by the Assessing Officer. 2. Briefly stated the facts are that, the assessee is engaged in the business of Dealer in Electric, Electronics and Hardware goods , filed return of income declaring income of ₹.3,52,040/- ₹.3,18,202/- for the A.Ys. 2009-10 2010-11 respectively. The returns were processed u/s.143(1) of the Act. Subsequently, Assessing Officer received information from the DGIT(Inv.), Pune about the accommodation entries provided by various dealers and assessee was also one of the beneficiary from those dealers. The assessments were reopened U/s. 147 of the Act based on the information received from DGIT (Inv.), Pune, that the assessee has availed accommodation entries from various dealers who are all providing accommodation entries without there being transportation of any goods. In the re-assessment proceedings, the assessee was required to prove the genuineness of the purchases made from various parties which ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , DCIT vs. Nitin Impex in ITA NO. 6178/Mum/2007, etc., relied by the Ld. A.R. are concerned it is noticed that the facts of the same are not applicable in the facts of case of appellant, as during the course of reassessments as well as appellate proceedings, the Ld. AR, time and again was asked to explain / justify the genuineness of purchases, made from hawala parties, by filing their current confirmation, bank statements and produce these hawala parties for examination, etc., but failed to do so. In the absence of these details the department could not examine the correctness, reasonableness and genuineness of these purchases. The perusal of the decisions of various courts reveals that there are varying / different findings and the same differ differ from case to case, based on the facts of each case. Therefore, the ratio of those cases cannot be said to be squarely applicable in the appellant s case. 6.6. Since the hawala parties have run away from their original addresses and the apellant is not in a position to furnish the current verifiable addresses, therefore, the department is also not in a position to enquire the genuineness of these purchases, mainly due to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... In view of the foregoing discussion, the percentage of disallowance of bogus purchases, has to be based on the facts of each case, hence the same cannot be generalized in every case. 6.9 From the above discussion, it is seen that the various courts have upheld the disallowances of bogus purchases, ranging from 25% to 100%, based on the facts of each case and nature of business. In the present case, it is seen that the appellant had recorded corresponding sales against alleged purchases; therefore, this is not a case where the 100% cash has been siphoned off by booking of bogus purchases. 6.10 Before the S T Department, these so called hawala dealers, have, inter-alia, stated as under: 1....... do not have any go-downs / storage of goods. 2....... have not actually purchased/sold any goods. Only paper bills issued that too without physically delivery of goods. 3......do not maintain any books of accounts in respect of above concern. 4.....have given blank signed cheque book, blank bills and blank challan etc. 5...... have signed on blank account opening form of the bank, as per direction. . ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 9 . 54 -- -- NP 3,32,981 4,03,394 4,45,483 4,26,485 4,14,656 6,16,353 6,23,919 NP Rate 1 . 97 % 2 . 38 % 2 . 79 % 3 . 15 % 2 . 00 % 2 . 00 % 2 . 61 % NP After add of BP -- -- 12,81,031 7,93,297 10,13,806 -- -- NP Rate -- -- 8 . 04 % 5 . 86 % 5 . 06 % -- ..... X X X X Extracts X X X X X X X X Extracts X X X X
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