TMI Blog2021 (3) TMI 505X X X X Extracts X X X X X X X X Extracts X X X X ..... ore, no infirmity in the order passed by the Ld.CIT(A) in restricting the addition to 12.5% as against the entire bogus purchases disallowed by the Assessing Officer. Grounds raised by the revenue are dismissed. - ITA NO. 4704/MUM/2019 (A.Y. 2009-10) - - - Dated:- 21-1-2021 - SHRI C.N. PRASAD, HON'BLE JUDICIAL MEMBER Assessee by: None Department by: Shri Sanjay J. Sethi ORDER PER C.N. PRASAD (JM) 1. This appeal is filed by the revenue against order of the Learned Commissioner of Income Tax (Appeals) 22, Mumbai [hereinafter in short Ld.CIT(A) ] dated 30.04.2019 for the A.Y.2009-10 in restricting the addition to 12.5% as against the entire bogus purchases disallowed by the Assessing Officer. 2. Briefly st ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tries without there being any transportation of materials and the assessee might have made purchases in the gray market. It is the finding of the Assessing Officer that assessee failed to prove the purchases made are actually delivered to it and consumption of the same in the production of finished goods, no quantitative details of purchases made linked up with the quantity of consumption in finished goods and semi-finished goods. Therefore, Assessing Officer treated purchases of ₹.59,467/- as non-genuine and bogus. On appeal the Ld.CIT(A) considering the evidences and various submissions of the assessee restricted the addition to 12.5% of the alleged bogus purchases. 4. Assessee through its Authorized Representative filed a letter ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the beneficiary of such bogus bills from M/s SURAT TUBE CORPORATION of ₹ 59,467/-. The Ld. Assessing Officer observed that there is suppression of primary facts in the return of the assessee and the income was found not to be correctly computed. One undisputed fact that is oozing out is that the assessee could not substantiate the genuineness of the purchases made from Hawala Parties in the form of accommodation entries out of these non- genuine transactions. Even vide order sheet entry dated 13/02/2015, the assessee was asked to establish the genuineness of the parties and the purchases made from them. The assessee was provided opportunity by the A.O. to produce the parties along with books of accounts as these parties were found no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to do so and thus the purchases remained unverifiable. The assessee could not file the vital documents such as delivery challans, transport receipts, octroi receipt for payment octroi duty,. receipt of weighbridge for weighing the goods, excise gate pass, goods inward register, maintained at godown/warehouse/storage place etc. Even the Sales Tax Department certifies that the concerned party was a Hawala Operator. It is evidently clear that the assessee did not make any effort to controvert the finding of the Investigation wing and further to produce the seller party. It is clear that the Appellant has not placed any evidence on record that the goods were purchased from the above parties at arms' length price, this would indicate ..... X X X X Extracts X X X X X X X X Extracts X X X X
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