TMI Blog2021 (2) TMI 779X X X X Extracts X X X X X X X X Extracts X X X X ..... in the transactions in question. In our considered view, the findings of the Ld. CIT (A) are well reasoned and based on the law laid down in SIMIT P SHETH [ 2013 (10) TMI 1028 - GUJARAT HIGH COURT] no reason to interfere with the findings of the Ld. CIT (A) - Decided against revenue. - ITA No. 3724/MUM/2019 (Assessment Year: 2009-10) - - - Dated:- 6-1-2021 - SHRI SHAMIM YAHYA (AM) AND SHRI RAM LAL NEGI (JM) Revenue by: Shri Jitendra Kumar (DR) Assessee by: None ORDER PER RAM LAL NEGI, JM This appeal has been filed by the revenue against the order dated 07.03.2019 passed by the Commissioner of Income Tax (Appeals)-26 (for short the CIT(A), Mumbai, for the assessment year 2009-10, whereby the Ld. CIT(A) has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion entry providers, as concluded by Sales Tax Authorities pursuant to the investigation carried out by them? 2. Whether on the facts and in the circumstances of the case and in law, the Ld.CIT (A) has erred in not considering the latest Apex Court decision in the case of N K Proteins Ltd Vs DCIT (769 of 2017) wherein the Hon ble Supreme Court has confirmed 100% addition made on account of bogus purchases?. 4. This case was fixed for final hearing on 22.10.2020. However, when the case was called for hearing, none appeared on behalf of the assessee. We notice that the assessee has not appeared despite service of notice. Hence, we decided to dispose of this appeal on the basis of the material available on record, after hearing th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntries only. To verify the same, the AO had made enquires by issuing notices u/s 133 (6) which were returned unserved by the postal authorities. This party was found to be non existent at the address given by the appellant. The appellant also failed to provide the latest address of the party. During the scrutiny assessment the appellant furnished details of purchases and corresponding sales. However, the appellant could not produce the party before the AO inspite of opportunity being given. The appellant also failed to produce delivery challans or transportation details. The onus of proving the genuineness of such purchases is on the appellant which the appellant had not been also able to discharge fully. When the hawala party had admitted ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dition is restricted to 12.5% of the bogus purchases of ₹ 19,16,034/-. This ground of appeal is party Allowed. 7. We notice that the Ld. CIT (A) has partly allowed the appeal of the assessee and restricted the addition to 12.5% of the bogus purchases shown by the assessee by following the ratio laid down by the Hon ble Gujarat High Court in the case of Simit P. Sheth (supra). We further notice that the AO has not rejected the sales of the assessee. Since there can be no sale without purchases, the Ld CIT(A) has rightly concluded that the assessee had purchases the material from the parties other than the parties mentioned in its books of account. Under these circumstances, the Ld. CIT (A) has rightly restricted the addition to 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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