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TMI Blog2021 (12) TMI 497X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee in spite of calls and even no application for adjournment was moved. On the other hand, Ld. DR is present in the court and is ready with arguments. Therefore, we have decided to proceed with the hearing of the case ex-parte with the assistance of the Ld. DR and the material placed on record. 3. The brief facts of the case are, the assessee filed its return of income for assessment year 2010-11 declaring total income at Rs. 4,66,35,750/- under normal provision and declared income of Rs. 15,59,31,904/- u/s 115JB of the Income Tax Act, 1961 (in short Act). The return was processed u/s 143(2) of the Act. The case was selected for scrutiny by issue of notice u/s 143(2) and 142(1) of the Act and served on the assessee. During the assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessing Officer rejected the submissions of the assessee and observed that the assessee has not filed any supporting documents like goods receipt note, installation report, work completion, lorry receipts etc. before him. In order to verify the genuineness of the transaction, the Assessing Officer issued notice u/s 133(6) of the Act and all the notices were returned un-served with the remark that the parties are not known or unavailable. In the absence of any confirmation from these parties, the Assessing Officer presumed that these parties are not in existence and he relied on various case laws to treat these purchases as bogus purchases to the extent of Rs. 6,48,75,502/-. 4. Aggrieved, assessee preferred an appeal before the CIT(A) and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... where the A.O. had found that some of the alleged suppliers of steel to the assessee had not supplied any goods but had only provided sale bills and hence, purchases from the said parties were held to be bogus. The A.O. in that case added the entire amount of purchases to gross profit of the assessee. Ld. CIT(A) having found that the assessee had indeed purchased though not from named parties but other parties from grey market, partially sustained the addition as probable profit of the assessee. The Tribunal however, partly sustained the addition. Taking into account the above facts, the Hon'ble Gujarat High Court held that since the purchases were not bogus, but were made from parties other than those mentioned in books of accounts, on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... counts through fictitious invoices. 7.27 The appellant has relied upon the decision of CIT(A) in its own case for A. Y.2010-11 where in disallowance has been restricted to 2%. The Ld. CIT(A) in arriving at such decision has followed decision of Hon'ble ITAT in the case of Innovators Façade vs. ACIT(Cir-2) Thane, ITA No.5450, 5451 and 5452/Mum/2015 dated 20.07.2016. It is seen that such decision of the Hon'ble ITAT has been given keeping in view the GP rate shown by the assessee and comparable figure of the GP rates in earlier year. There is no such fact given in this case to attract application of such decision. 7.28 As narrated earlier, the Ld. AO in this case has held that the parties from which the purchases were mad ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessing Officer has made detailed verification of the parties were considered as bogus based on the statement of Shri Dilip S. Doshi based on the information from Investigation Wing, Mumbai. The Assessing Officer found that four parties who were supplied the material to the assessee are bogus and accordingly he disallowed 100% of the purchases from these parties and assessee has partly claimed the expenditure in the profit and loss account and partly charge to work-in-progress. We noticed that the Ld. CIT(A) analysed the findings of the Assessing Officer and submissions of the assessee in detail and he came to conclusion that the Assessing Officer has taken note of the transactions as bogus. However, AO failed to acknowledge that the asses ..... X X X X Extracts X X X X X X X X Extracts X X X X
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