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TMI Blog2017 (11) TMI 2051X X X X Extracts X X X X X X X X Extracts X X X X ..... identical in nature, therefore, these were clubbed together, heard together and are being decided by this common order, for the sake of convenience. ITA No.2588/Mum/2017 (by revenue) and CO 212/Mum/2017(by assessee) 3. The only ground raised by the revenue is against the deletion of addition of Rs.1,61,38,686/- by the ld.CIT(A) as made by the AO on account of bogus purchases being non-genuine, whereas the assessee filed cross-objection against the upholding the reopening u/s 147 r.w.s.148 confirming the addition to the tune of Rs.34,22,360/- being 17.5% of the total bogus purchases as against the 100% made by the AO. 4. Facts in brief are that the assessee was engaged in diversified businesses such as octroi and toll collection, steel In ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onsidering the same came to the conclusion that the purchases as made by the assessee were bogus and mostly made in the second week of the year 2009 and even if the purchases were considered as having been made actually they will fall u/s 40A(3) of the Act for having paid in cash. Therefore, the AO added the entire purchases of Rs.1,95,62,046/- to the income of the assessee by framing assessment u/s 143(3) of the Act r.w.s.147 vide assessment order dated 23.3.2015 by assessing the income at Rs.1,95,62,050/-. Aggrieved by the order of the AO, the assessee preferred an appeal before the ld.CIT(A), who partly allowed the appeal of the assessee by upholding the reopening of assessment u/s 147 of the Act and partly sustaining the addition to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that some percentage addition ranging from 4% to 12.50% or a reasonable percentage of the bogus purchase should be applied towards savings and the leakages of revenue for the reason that the assessee might have purchased the material from grey market thereby saving VAT and other incidental taxes. In the instant case, we find that the assessee failed to prove the genuineness of purchases by producing the relevant documentary and circumstances evidences before the lower authorities as desired by them whereas the consumption of the materials is not disputed. Therefore, we are of the considered view that a reasonable addition should be made to cover the various types of savings which the assessee might have made by purchasing the goods from th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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