9911796707
TMI Blog2021 (8) TMI 861X X X X Extracts X X X X X X X X Extracts X X X X ..... 753/2014-15 dated 31/10/2019 (ld. CIT(A) in short) against the order of assessment passed u/s.143(3) of the Income Tax Act, 1961 (hereinafter referred to as Act) dated 25/03/2013 by the ld. Asstt. Commissioner of Income Tax, Central Circle-2, Thane (hereinafter referred to as ld. AO). 2. The only issue to be decided in these cross appeals is with regard to disallowance made on account of bogus purchases. 3. We have heard rival submissions and perused the materials available on record. We find that the assessee is a private limited company engaged in the business of building and development of project by the name of Bhoomi Mall at Plot No.9, Sector-15, Belapur, Navi Mumbai and had electronically filed its return of income for the A.Y.2010- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urned unserved. The ld. AO accordingly, concluded that these parties are non-existent and also based on the information received from the Sales Tax department that these parties are tainted dealers and are engaged in providing only accommodation bills to various authorities, he proceeded to disallow the entire purchases of Rs. 1,98,37,965/- made from the aforesaid three parties, as non-genuine. However, the assessee claimed before the appellate proceedings that it had filed the copies of ledger accounts of the suppliers for the relevant period, copies of tax invoice which bear TIN of the dealers / suppliers, copies of delivery challans, copies of confirmation received from the dealers / suppliers and copies of bank statement evidencing the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... operated by the assessee. The assessee requested the ld. CIT(A) that the profit element embedded in the value of such purchases may be brought to tax on reasonable basis. Accordingly, the ld. CIT(A) observed that if the value of bogus purchases of Rs. 1,98,37,965/- is reduced from the cost of construction, then the gross profit rate of the assessee of the business becomes 94.69% which when compared with the GP percentage for F.Y.2011-12 to 2014-15 would be 55.13% thereby resulting in difference in GP rate of 39.56%. Accordingly, the ld. CIT(A) proceeded to make addition @39.56% of value of disputed purchases of Rs. 1,98,37,965/- and restricted the addition amount to 78,47,900/-. Against this order of the ld CIT(A), both revenue as well as a ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
