TMI Blog2022 (6) TMI 366X X X X Extracts X X X X X X X X Extracts X X X X ..... ally and validly decided the issue and finding no illegality or perversity in the same, appeal filed by the Revenue is hereby dismissed. - ITA No.183/MUM/2021 - - - Dated:- 27-5-2022 - SHRI BALAGANESH, ACCOUNTANT MEMBER AND SHRI KULDIP SINGH, JUDICIAL MEMBER For the Assessee : None For the Revenue : Shri Rajat Mittal, D.R. ORDER Per : Kuldip Singh, Judicial Member: The appellant, Income Tax Officer (hereinafter referred to as the Revenue ) by filing the present appeal, sought to set aside the impugned order dated 03.08.2020 passed by Commissioner of Income Tax (Appeals)-3, Mumbai [hereinafter referred to as the CIT(A)] qua the assessment year 2009-10 on the grounds inter alia that :- On the facts and in th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d notice to the Shri Viramkumar Goulddas Shah, proprietor of Vahal Trading Pvt. Ltd. qua the purchase of Rs.7,26,999/- during financial year 2008-09 but notice returned unserved with the report unclaimed/left . Even the assessee has not appeared before the AO to prove the genuineness of the alleged purchases. Consequently, the AO proceeded to hold that the assessee s bogus purchases made from Vahal Trading Pvt. Ltd. are non genuine in order to inflate its purchases of Rs.7,26,999/- and thereby made addition of entire amount of bogus purchases of Rs.7,26,999/- and thereby framed the assessment at the total income of Rs.9,34,410/- under section 144 read with section 147 of the Act. 4. Assessee carried the matter before the Ld. CIT(A) by w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... copies of ledger extracts, copy of stock register, copies of sales bills with deliver chaflans, etc. However, the fact remains that the information called for from this party u/s 133(6) of the Act remained un-complied with. It is noted that the AO was in possession of information received from the Sales Tax Department, indicating strongly that the suppliers concerned were only providing accommodation entries and were not carrying out any real business. Thus, the onus that was cast on the appellant was of a greater degree to prove the genuineness of this party as well as of these purchases. Under these circumstances the claim of the appellant that the said purchases are genuine cannot be accepted in totality. 6.1 Further, on perusal of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 3 Considering the facts of case and in view of various decisions as discussed above, it is held that the appellant has made sales so the purchases cannot be totally bogus. Therefore only 25% of the bogus purchases, i.e. Rs. 1,81,750/-, out of total purchases of Rs, 7,26,999/- may be added to the income of the appellant. Accordingly the disallowance of Rs 1,81,750/- is confirmed and balance amount of Rs. 5,45,249/- is deleted. The above grounds of appeal are partly allowed. 8. We have perused the findings returned by the Ld. CIT(A) which is based upon the facts of the case and law applicable thereto settled in case of Vijay Proteins Ltd. (supra) and in case of Sanjay Oilcake Industries (supra). 9. The Ld. D.R. for the Revenue contende ..... X X X X Extracts X X X X X X X X Extracts X X X X
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