9911796707
TMI Blog2019 (12) TMI 450X X X X Extracts X X X X X X X X Extracts X X X X ..... rchases 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 Rs..3,52,040/- & Rs..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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing the evidences and various submissions of the assessee restricted the disallowance to the extent 5% of the non-genuine purchases for the A.Y. 2009-10 & 2010-11 respectively. 3. Ld. DR vehemently supported the orders of the Assessing Officer. 4. We have heard the rival submissions, perused the orders of the authorities below. On a perusal of the order of the Ld.CIT(A), we find that the Ld.CIT(A) considered this aspect of the matter elaborately with reference to the submissions of the assessee and the averments in the Assessment Order and considering the nature of the business of the assessee and considering various decisions of High Courts restricted the disallowance to 5% of the non-genuine purchases for the A.Y. 2009-10 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... department is also not in a position to enquire the genuineness of these purchases, mainly due to failure on the part of the appellant. As regards the cross examination of these hawala parties is concerned, the same could not be carried out in view of the fact that these parties were men of no means, hence run away from sites. Secondly, these are the parties, from whom the appellant claimed to have purchased goods and debited in the P&L Account, therefore, it was duty of the appellant to furnish the verifiable current addresses/ confirmation of ledger accounts, etc., for summoning, to establish the genuineness of the purchases and also to ensure their attendance for cross verification. 6.7. As regards other aspects such as payment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t/ establishes the genuineness of the transaction. In number of other cases, as discussed above, it is noticed that the disallowance ranging from 25% to 100% of bogus purchases have been held as reasonable, based on the facts of those cases. 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; therefo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 75,821 1,59,41,290 1,35,29,826 2,00,28,932 3,08,44,256 2,38,62,589 GP 9,31,881 11,60,670 16,24,450 14,56,614 13,10,970 15,69,359 15,28,709 GP Rate 5.50% 6.84% 10.19% 10.77% 6.55% 5.09% 6.41% GP After add of BP -- -- 24,59,998 18,23,426 19,10,120 -- -- GP Rate -- -- 15.43 13.48 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% -- -- 6.12 From the above details it is seen that in the years under appeals i.e. A.Y. 2009-10, A.Y. 2010-11 & 2011-12 the appellant had declared NPs at 2.79%, 3.15% ..... X X X X Extracts X X X X X X X X Extracts X X X X
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