Tribunal modifies additions in appeals for multiple assessment years, upholding reassessment due to non-existent entities.

The tribunal partly allowed all three appeals, modifying the additions made by lower authorities for AYs 2008-09, 2010-11, and 2011-12. The profit element in transactions was estimated at 2% of alleged bogus purchases, considering the business nature and thin profit margins. The reassessment proceedings were upheld due to non-existent entities from which purchases were made, leading to sustained additions to account for the profit element.

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Issues:
1. Recalling of appeals due to initial ex-parte disposal
2. Alleged bogus purchases and reassessment proceedings
3. Estimation of profit element in transactions
4. Assessment for AY 2008-09
5. Assessment for AY 2010-11 and 2011-12

Issue 1: Recalling of appeals due to initial ex-parte disposal
The appeals were initially disposed-off ex-parte, but upon the assessee's miscellaneous applications, the order was recalled. The appeals were then set for fresh hearing before the bench.

Issue 2: Alleged bogus purchases and reassessment proceedings
The assessee was assessed for AY 2008-09 under section 143(3) r.w.s. 147, with income determined at a higher amount due to alleged bogus purchases. The case was reopened based on information from DGIT, leading to the disallowance of purchases from entities that were found to be non-existent upon field inquiries.

Issue 3: Estimation of profit element in transactions
The first appellate authority concluded that while the sales were accepted, the profit element embedded in the transactions needed to be taxed. The profit was estimated at 12.5% of the alleged bogus purchases, which was further revised by the tribunal to 2% considering the nature of the business and thin profit margins.

Issue 4: Assessment for AY 2008-09
The tribunal found that there could be no sale without actual purchase of material, and the assessee's failure to substantiate the purchases led to the additions being sustained to account for the profit element in the transactions. The tribunal modified the order to estimate additions at 2% of the alleged bogus purchases, partly allowing the appeal.

Issue 5: Assessment for AY 2010-11 and 2011-12
Similar to AY 2008-09, for AYs 2010-11 and 2011-12, the additions were restricted to 2% of the alleged bogus purchases, resulting in the appeals for these assessment years being partly allowed.

In conclusion, all three appeals were partly allowed by the tribunal, modifying the additions made by the lower authorities based on the estimation of the profit element in the transactions and considering the nature of the business and profit margins involved.

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