TMI Blog2020 (3) TMI 281X X X X Extracts X X X X X X X X Extracts X X X X ..... plier relied that due to raid by the department the information could not be furnished We cannot sustain the order of CIT(A) upholding the order of AO wherein 100% bogus purchases were added. In our opinion, a percentage can be applied to bring to tax the profit element in the said purchases. Accordingly we direct the AO to apply rate of 12.50% on the said purchases. - Appeal of the assessee is partly allowed. - ITA No. 1045/Mum/2019 (Assessment Year 2011-12) - - - Dated:- 12-2-2020 - SRI C N PRASAD, JM AND SRI RAJESH KUMAR, AM Appellant by: None Respondent by: Shri R Bhoopathi, DR ORDER PER RAJESH KUMAR, AM: This appeal by the assessee is arising out of the order of Commissioner of Income Tax (Appeals)-48 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The hawala traders admitting before the sales tax authorities in their deposition that they were providing only accommodation purchase bills on commission basis without being actual purchase/ sale of goods. The AO during the course of scrutiny assessment proceedings required the assessee to file the details of purchase. The assessee filed copies of purchase bills from the above said parties, copies of ledger extract and copies of bank statements to prove the payments by cheque. The AO required the assessee to produce these parties for verification but assessee expressed his inability to do so. According to the AO, the assessee failed to establish the genuineness of the purchase and accordingly, he made addition of unproved purchase at ͅ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uld not substantiate his claim of purchase from this party to any of the corroborative internal evidences like stock register, consumption register or details regarding the godown where the stock was kept. Since the purchases could not be substantiated either from assessee or from the party, assessing officer disallowed the same as bogus purchases and made a addition of ₹ 46,644/-. 5.3 In the appeal proceedings also, apart from the reiteration of the same argument. assesses could not substantiate any of the details. Assessee relied upon a plethora of case laws however the fact is that each case has its specific facts and it is only in the light of those facts that a particular decision is taken. Therefore, the case laws decided u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd that the assessee could not substantiate the consumption of materials in manufacturing process. We also note that assessee has filed purchase bills, challan for receipt of goods, details of payment through cheque and bank statement etc. The notice 133(6) the Act was also issued but the supplier relied that due to raid by the department the information could not be furnished. Under these facts and circumstances we cannot sustain the order of CIT(A) upholding the order of AO wherein 100% bogus purchases were added. In our opinion, a percentage can be applied to bring to tax the profit element in the said purchases. Accordingly we direct the AO to apply rate of 12.50% on the said purchases. 8. In the result, appeal of the assessee is pa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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