TMI Blog2020 (3) TMI 135X X X X Extracts X X X X X X X X Extracts X X X X ..... id observations the appeal filed by the revenue is dismissed. - ITA No. 5132/Mum/2017 - - - Dated:- 8-1-2020 - Shri Manoj Kumar Aggarwal, Accountant Member And Shri Ravish Sood, Judicial Member For the Appellant : Shri Vinay Sinha, CIT D.R. For the Respondent : None ORDER PER RAVISH SOOD, JM The present appeal filed by the revenue is directed against the order passed by the CIT(A)-14, Mumbai, dated 18.05.2017, which in turn arises from the order passed by the A.O under Sec.143(3) r.w.s 147 of the Income Tax Act,1961 (for short Act‟), dated 27.02.2015. The revenue has assailed the impugned order on the following grounds of appeal before us: (i) The Learned CIT(A) has erred on facts and in law in givi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tated, the assessee company which is engaged in the business of trading in iron and steel, machinery etc. had filed its return of income for A.Y. 2009-10 on 27.09.2009, declaring its total income at ₹ 1,45,65,720/-. The return of income filed by the assessee was processed as such under Sec. 143(1) of the Act. On the basis of information received by the A.O that the assessee as a beneficiary had obtained bogus purchase bills aggregating to ₹ 42,95,62,364/-, its case was reopened under Sec. 147 of the Act. 3. During the course of the assessment proceedings it was observed by the A.O that the assessee had claimed to have made purchases aggregating to ₹ 42,95,62,364/- from the following 4 parties: Sr. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y the assessee to have been made from the aforementioned parties. On the basis of his aforesaid deliberations the A.O assessed the income of the assessee company at ₹ 44,41,96,084/-. 4. Aggrieved, the assessee carried the matter in appeal before the CIT(A). Observing, that the A.O had not doubted the duly accounted sales of the assessee for the year under consideration, the CIT(A) was of the view that the entire value of purchases could not have been disallowed. Rather, it was observed by the CIT(A) that a clear correlation between the amount of purchases and the corresponding sales could safely be gathered from the stock register of the assessee company. Apart from that, it was observed by the CIT(A) that the disallowance of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nal. It was submitted by the ld. D.R that the appeal of the assessee was disposed off by the Tribunal, vide its order dated 20.12.2017 in ITA No.4576/Mum/2017. It was averred by the ld. D.R, that as the appeal of the assessee was independently disposed off by the Tribunal, therefore, the revenue had filed a miscellaneous application with the Tribunal viz. M.A. No. 88/Mum/2019, seeking recall of the order, with a request, that the same may be disposed off along with the appeal of the revenue which was pending before the Tribunal. It was the claim of the ld. D.R that the aforesaid miscellaneous application filed by the revenue was dismissed by the Tribunal vide its order passed in M.A. No. 88/Mum/2019, dated 05.07.2019. It was submitted by th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . In the aforesaid order, the Tribunal had upheld the disallowance of 12.5% of the aggregate value of the tainted/bogus purchases by the CIT(A). In sum and substance, the order of the CIT(A) had been upheld by the Tribunal while disposing off the appeal of assessee. The Tribunal while dismissing the appeal of the assessee for the captioned year had observed as under: 8. We have considered the rival submission of the parties and have gone through the orders of authorities below. During the re-assessment proceedings the assessee was asked to substantiate the purchases and to furnish the documents related to the purchases and to produce the parties for verification. The assessee failed to produce the parties for verification and the relev ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e ld. CIT(A), has again argued before us that the purchases made from KRC Trading and ISK Trading was more. The ld CIT(A) observe that the assessee has not furnished the evidence of transportation. However, the ld CIT(A) on his observation that there cannot be any sale without purchases further by making additions the GP/NP will increased by 26% for which there is no comparable. The ld. CIT(A) sustained the addition at 12.5% of the bogus purchases on the basis of decision of different High Courts which includes Bholanath Poly Feb Pvt. Ltd. 355 ITR 290 (Guj), Sanket Steel Traders vs. ITO and the Vijay Proteins Ltd. vs. ACIT 58 ITR 428 (Ahd.) and CIT vs. Simit P. Sheth [39 taxman.com 385 (Guj)] etc. We are also of the view that under Income-t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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