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TMI Blog2024 (3) TMI 1012X X X X Extracts X X X X X X X X Extracts X X X X ..... Delhi ["learned CIT(A)"], for the assessment years 2007-08, 2009-10 and 2012-13. 2. Since all the appeals pertain to the same assessee and involve a similar issue that arises out of a similar factual matrix, therefore, these appeals were heard together and are being decided by way of this consolidated order. With the consent of the parties, the appeal for the assessment year 2007-08 is taken up as a lead case and the decision rendered therein shall apply mutatis mutandis to the other appeals of the assessee before us. ITA no.3623/Mum./2023 Assessee's Appeal - A.Y. 2007-08 3. In this appeal, the assessee has raised the following grounds:- "A. In the facts and in the circumstances of the case the Ld. CIT(A) erred in confirming the actio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he above, the Appellant humbly submits that the disallowance, if at all required to be made, must be restricted to 5% of the alleged bogus purchases as has been done by the Id. AO in scrutiny assessments in the other years. E. The appellant craves leave to add amend alter or delete any or all grounds of Appeal." 4. During the hearing, the learned Authorised Representative ("learned AR") wishes to argue the grounds pertaining to disallowance on account of alleged bogus purchases. The brief facts of the case pertaining to this issue are that for the year under consideration, the assessee filed its return of income on 18/10/2007 declaring a total income of Rs.39,54,175. The return filed by the assessee was selected for scrutiny and vide ord ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... edings. Accordingly, the AO held that this leads to prove that the purchases shown to have been made by the assessee are bogus in nature. The AO further held that day-wise stock register is not produced, and the books produced are not in working condition. Therefore, the AO held that the purchases made from the entities controlled by Mr. Bhanwarlal Jain and his group, were debited not just to cover up the grey market purchases but also to suppress the taxable profit and to defraud the Revenue. Accordingly, the AO disallowed the entire purchases amounting to Rs.4,65,85,141 and added the same to the total income of the assessee. The learned CIT(A), vide impugned order, following the decision of the Hon'ble Gujarat High Court in CIT v/s Simit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e assessee. Further, it cannot be doubted that without the purchase of diamonds, the assessee cannot carry out the sale. Therefore, it appears to be a case of bogus bills arranged from the aforesaid entities and diamonds purchased from somewhere else at a lower cost. Thus, we are of the considered view that a reasonable disallowance of the purchases would meet the possibility of revenue leakage. 6. During the hearing, the learned AR by referring to the assessment orders passed in assessee's own case for the assessment years 2008-09, 2010-11, 2011-12, 2013-14, and 2014-15 submitted that the AO made the addition of 5% of the non-genuine purchases from the entities controlled by Mr. Bhanwarlal Jain and his group. The learned AR further submit ..... X X X X Extracts X X X X X X X X Extracts X X X X
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