TaxTMI 
TaxTMI 
2020 (11) TMI 373
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.... done by the Assessing Officer (A.O.). The assessee in its appeal has also challenged the validity reopening of the assessment and refusal by ld. CIT(A) to admit the additional evidence. 3. Brief facts of the case are that the assessee company is engaged in the business of import and export of diamond. In these cases assessment was reopened on the basis of information received from DCIT(Investigation), Mumbai that during the previous year, the assessee has taken the accommodation earlier in bogus purchase. The A.O. made 9% addition of the bogus purchase as under: A. Y. Amount 2008-09 59,70,604 2009-10 29,43,972 2010-11 30,47,064 2012-13 1,06,04,619 2013-14 1,44,282 2014-15 73,78,860 4. Since the facts are simil....
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....hases from these suspicious dealers, as during the course of investigation, and as per the affidavit/statements by the proprietor/partner/ or operator of the firm admitted before the Income Tax investigation officer, that they have not done any genuine business. At the same time the assessee has purchased the goods from some other suppliers, may be without bills. It is a well known fact that if any person indulges in the practice of purchasing goods from the grey market and obtaining bogus bills of some other parties, would do so for getting some benefit. The magnitude of the benefit would depend 011 the facts of each case. The rate of purchase made from undisclosed parties is much lower than the rate of credit purchases, on account of evas....
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.... Total ... 59,70,604 14.4. In view the above Gross Profit of the transaction made from the above parties totaling to Rs. 59,70,604/- is added to the total income of the assessee. In view of the fact as stated above, 1 am satisfied that it is a fit case of initiation of penalty proceedings u/s 271 (l)(c) since the assessee has furnished inaccurate particulars of income & thereby concealed income. 5. Upon the assessee's appeal, the ld. CIT(A) upheld the validity reopening. On merits, he noted that the assessee has placed on record before the A.O. various details in the form of purchase bills from the aforesaid parties, account confirmation of the above parties, bank statement of the above parties for payment....
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....,56,262/- and an addition of Rs. 27,08,501/- to the total income of the appellant is sustained. The appellant gets relief of Rs. 3,38,563/- (Rs. 30,47,064/- minus Rs. 27,08,501/-). 8.3.34 For AY 2012-13, the profit embedded in accommodation entries of purchase of diamonds is estimated @ 8% of the purchase amount of Rs. 11,78,29,100/- and an addition of Rs. 94,26,328/- to the total income of the appellant is sustained. The appellant gets relief of Rs. 11,78,291/- (Rs. 1,06,04,619/- minus Rs. 94,26,328/-). 8.3.35 For AY 2013-14, the profit embedded in accommodation entries of purchase of diamonds is estimated @ 8% of the purchase amount of Rs. 16,03,131/- and an addition of Rs. 1,28,250/- to the total income of the appellant is sustaine....
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....rom the investigation wing about the bogus nature of transactions entered by Shri Bhanwarlal Jain group. Even though the AO has mentioned the reasons that there was failure on the part of the assessee to disclose fully and truly all material facts necessary for assessment, yet he has not specified the manner of failure. 11. On the contrary, we notice that the assessee has proved the genuineness of purchases by obtaining confirmation letters in the form of affidavits from all the suppliers. The AO has done independent enquiry during the course of assessment proceedings by issuing notices u/s 133(6) of the Act to all the suppliers. We notice that the notices were duly served upon the suppliers and they have also responded by filing their r....
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....is view of the matter, we are of the view that no addition is called for on account of alleged bogus purchases. Accordingly we set aside the order passed by Ld CIT(A) on this issue and direct the AO to delete the impugned addition. 11. We find that facts in the present case are identical. Further sales have not been doubted. Rather in the present case as noted by the ld. CIT(A) all the details are on record and hence the ld. CIT(A) held that there was not any need of issuing notice to the impugned supplier. Since there is an order of ITAT in the assessee's own case which has not been reversed by Hon'ble Jurisdictional High Court and ld. DR has not been able to rebut this, we follow the co-ordinate bench decision in the assessee's own ....