9911796707
TMI Blog2022 (11) TMI 377X X X X Extracts X X X X X X X X Extracts X X X X ..... for Assessment Years 2009-10 and 2010-11, respectively on the grounds interalia that:- ITA No.1952/Mum/2022 (A.Y. 2009-10) "Being aggrieved by the order passed by the Learned Assessing Officer (A..O) u/s 143(3) r.w.s. 147 of the Income Tax Act ('the Act') and as partly allowed by the CIT (A), your appellant prefers an appeal on the following grounds, which it is prayed, may be considered without prejudice to one another, i. (a) On facts and circumstances of the case and in law, Ld. CIT(A) erred in confirming the action of the A.O and restricting the addition calculated by the A.O to 25% on alleged bogus purchases without appreciating the facts that the opinion of the A.O is based on merely presumptions and sub conjectures an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , Ld. CIT(A) erred in enhancing the addition to 100% of purchases when the books are not rejected by the A.O . It is an proven fact by various judicial authorities that sales without purchases is not possible. (b) The CIT (A) erred in enhancement to 100% addition without appreciating the understated vital facts that the purchases are duly supported with necessary documentary evidences including quantitative tally of purchases and sales and there appears no sign of it being bogus and the learned officer accepted the books of accounts. (c) On facts and circumstances of the case and in law, Ld. CIT(A) erred in enhancing the addition to 100% of purchases when the appellant is a trader and the sale is substantiated with all the documents. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... el Industries Rs.2,31,429/- Total Rs.63,52,693/- A.Y. 2010 -11 1. Mumbai Metal Corporation Rs.13,44,157/- 2. Vidhi Metal Industries Rs. 24,851/- 3. Ambika Enterprises Rs.17,03,095/- 4. P M Steel (INDIA) Rs. 4,15,895/- 5. Hindustan Steel Impex Rs. 8,65,678/- Total Rs.43,53,676/- 3. In Assessment Year 2009-10, the assessee reported to have shown purchases of Rs.63,52,993/- from the aforesaid parties which were not doing genuine business of purchases and sales but merely providing accommodation bills. To verify the genuineness of the purchases made by the assessee, the Assessing Officer issued notices under section 133(6) of the Act but could not be served. The Assessing Officer consequently proceeded to hold that the ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the record in the light of the facts and circumstances of the case. 5A. Undisputedly, entire assessment in this case has been framed by the Assessing Officer on the basis of alleged information received from Sales-tax Department. It is also not in dispute that during the assessment proceedings, the assessee was called upon to prove the genuineness of purchases by producing parties as well as by way of issuance of notices under section 133(6) of the Act. It is also not in dispute that both Assessing Officer as well as the Ld.CIT(A) have proceeded to make / confirm the addition qua alleged bogus purchases on the basis of estimation without bringing on record the evidence to substantiate this allegation. 6. In the backdrop of the aforesaid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e been accepted being genuine the entire purchases cannot be treated as non genuine to make addition of the entire bogus purchases amount. Hon'ble High Court of Bombay in the case of JK Surface Coatings Pvt. Ltd. (supra) upheld the view taken by the Tribunal that in such circumstances gross profit should be in the range of 5% to 12.5% as reasonable estimation of profit element embedded in the bogus purchases by returning following findings: "4. Having considered the memo of Appeal and the Orders passed by AO / CIT(A) and the Order of I TAT, the only issue that comes up for consideration is with respect to the extent of ad-hoc disallowance to be sustained with respect to bogus purchases. The AO has observed 100% of the purchase value t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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