TMI Blog2017 (9) TMI 2002X X X X Extracts X X X X X X X X Extracts X X X X ..... ch cast serious doubt on assessee s claim. The addition, which could be made, was to account for profit element embedded in these purchase transactions to factorize for profit element earned by assessee against possible purchase of material in the grey market and undue benefit of VAT against bogus purchases. We estimate the same @8% keeping in view the assessee s nature of business and overall facts of the case. Accordingly, we sustain the addition to the extent of 8% of bogus purchases - Revenue s appeal stands partly allowed. - I.T.A. No. 196/Mum/2017 - - - Dated:- 6-9-2017 - SHRI D.T. GARASIA, JM AND SHRI MANOJ KUMAR AGGARWAL, AM For the Assessee : None For the Revenue : Saurabh Deshpande, Ld. DR ORDER Per ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 133(6) was issued to the alleged bogus supplier, however, the same could not be served as per inspector s report. The assessee, in support, produced ledger extracts, purchase bills, payment details, Bank statements etc. and contended that the purchases were genuine. However, Ld. AO noted that the assessee could not produce transportation receipts to prove actual delivery of material, confirmation from the alleged suppliers and could not produce any party for confirmation of the transaction. It was further noted that these parties admitted to have indulged in issuance of accommodation billing before sales tax authorities. Finally, not convinced with the assessee s contentions / submissions, Ld. AO treated the same as bogus purchases and adde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the 25 alleged bogus suppliers and further notices u/s 133(6) could not be served due to nonavailability of any of the party at the given address, which cast serious doubt on assessee s claim. The assessee could not produce any evidence to substantiate actual delivery of material. Therefore, in such a situation, the addition, which could be made, was to account for profit element embedded in these purchase transactions to factorize for profit element earned by assessee against possible purchase of material in the grey market and undue benefit of VAT against bogus purchases. We estimate the same @8% keeping in view the assessee s nature of business and overall facts of the case. Accordingly, we sustain the addition to the extent of 8% of bo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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