TMI Blog2017 (9) TMI 1916X X X X Extracts X X X X X X X X Extracts X X X X ..... situation in considered opinion on the facts and circumstances of the case the 12.5% disallowance out of the bogus purchases meets the end of justice. This is following the decision of Hon ble Gujarat High Court in the case of Simit P Seth [ 2013 (10) TMI 1028 - GUJARAT HIGH COURT] followed by the ITAT Mumbai Benches in a number of cases. We order of learned CIT(A) and direct that the disallowance be limited to 12.5% of the bogus purchase. Appeal filed by the assessee is partly allowed. - ITA No.7034/Mum/2016 - - - Dated:- 1-9-2017 - Shri Shamim Yahya, J. Appellant by: None Respondent by: Shri V.Janardhanan ORDER This is an appeal by the assessee wherein the assessee is aggrieved by the order of the learned CIT( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... thereby avoiding the payment of taxes. Hence, purchases amounting to ₹ 18,80,918/- were disallowed u/s 69C of the Act. 5.11. Keeping in mind the totality of circumstances as discussed above and the fact that AR of appellant has not brought on record any evidence to corroborate his arguments during appellate proceedings, it is adequate to meet the ends of justice, when the disallowance has been restricted to 25 percent of the bogus purchases of ₹ 18,80,918/- which amounts to ₹ 4,70,230/-. Appellant get relief of ₹ 14,10,689/-. The AO is therefore directed to restrict the disallowance as above. 4. Against this order, assessee has filed appeal before the ITAT. 5. I have heard the learned Departmental Repre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mp Enterprises. However, the facts of the present case indicate that assessee has made purchase from the grey market. Making purchases through the grey market gives the assessee selling on account of non-payment of tax and others at the expense of the exchequer. In such situation in my considered opinion on the facts and circumstances of the case the 12.5% disallowance out of the bogus purchases meets the end of justice. This is following the decision of Hon ble Gujarat High Court in the case of Simit P Seth followed by the ITAT Mumbai Benches in a number of cases. 8. Accordingly, I modify the order of learned CIT(A) and direct that the disallowance be limited to 12.5% of the bogus purchase. 9. In the result, the appeal filed by the a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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