TMI Blog2023 (5) TMI 69X X X X Extracts X X X X X X X X Extracts X X X X ..... Assessee : Shri Shashank Mehta, A.R. For the Revenue : Shri Chetan M. Kacha, D.R. ORDER PER : KULDIP SINGH, JUDICIAL MEMBER: The appellant, M/s. Babulal Hajarimalji Jain (hereinafter referred to as the assessee ) by filing the present appeal, sought to set aside the impugned order dated 15.12.2022 passed by the National Faceless Appeal Centre(NFAC) [Commissioner of Income Tax (Appeals), Delhi] (hereinafter referred to as CIT(A)] qua the assessment year 2011-12 on the grounds inter-alia that :- 1. In the facts and circumstances of the case and in law, the Ld. CIT(A) has erred in confirming the action of Ld. Assessing Officer in completing the reassessment proceedings without providing any opportunity of cross exami ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... acceptance of bogus purchase bills from bogus hawala bill providers and the assessee is one such beneficiaries of bogus purchase bills , assessment was reopened by initiating the proceedings under section 147/148 of the Income Tax Act, 1961 (for short the Act ). In response to the notice issued under section 148 of the Act the assessee opted to treat the return already filed as response to the notice under section 148 of the Act. Notices under section 142(1) and 143(2) along with questionnaires were issued. As per information received from DGIT (Inv.), Mumbai the assessee has accepted entries in respect of bogus purchases from 7 entities as under: Sr. No. Name of the party Amount (Rs.) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5. We have heard the Ld. Authorised Representatives of the parties to the appeal, perused the orders passed by the Ld. Lower Revenue Authorities and documents available on record in the light of the facts and circumstances of the case and law applicable thereto. 6. Undisputedly the entire addition in this case has been made by the AO as well as Ld. CIT(A) on the basis of guess work and estimation on the basis of some alleged information received from Sales Tax Department of Maharashtra and from DGIT (Inv.), Mumbai that the assessee has taken bogus purchase bills without having taken any delivery of the goods, without applying their mind. It is also not in dispute that the AO has also not examined the books of accounts of the assessee n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t 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 ITAT, 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 to be added to the income of Assessee, the CIT(A) has said it should be 15% and ITAT has said it should be 10%. First of all, this would be an issue which requires evidence to be led to determine what would be the actual profit margin in the business that Assessee was carrying on and the matter of calculations by the concerned authority. According to the Tribunal, in all such sim ..... X X X X Extracts X X X X X X X X Extracts X X X X
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