Appellant's Appeals Partially Allowed for AY 2009-10 & AY 2010-11

The Tribunal partially allowed the appellant's appeals for AY 2009-10 and AY 2010-11 by restricting the addition to 12.5% of the bogus purchases. The orders were pronounced on 04.02.2021 after considering the conduct of the appellant and the facts of the case.

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Issues:
Appeals against orders of Commissioner of Income Tax (Appeals) for AY 2009-10 and AY 2010-11 under sections 144, 147, and 250 of the Income Tax Act.

Analysis:
The appellant filed appeals against the orders of the Commissioner of Income Tax (Appeals) for AY 2009-10 and AY 2010-11 under sections 144, 147, and 250 of the Income Tax Act. The appellant challenged the addition of Rs. 6,04,182 made on account of hawala purchases. The Assessing Officer received information that the appellant obtained bogus purchase bills, leading to a best judgment assessment under section 144 of the Act. The appellant failed to produce evidence of the genuineness of purchase transactions, resulting in the addition of Rs. 6,04,182 to the total income. The CIT (Appeals) confirmed this addition, leading to the appellant's appeal to the Tribunal.

The Tribunal considered the grounds of appeal, finding that the appellant could not substantiate the genuineness of purchases. The disputed issue was the addition of bogus purchases, which the AO and CIT (Appeals) upheld. The Tribunal noted that the appellant made bogus purchases to evade tax payment. Relying on precedents, the Tribunal restricted the addition to 12.5% of the bogus purchases, modifying the CIT (Appeals) order and partly allowing the appellant's appeal. This decision applied to both AY 2009-10 and AY 2010-11 appeals, resulting in a partial allowance of the appeals.

In conclusion, the Tribunal partially allowed the appellant's appeals for AY 2009-10 and AY 2010-11 by restricting the addition to 12.5% of the bogus purchases. The orders were pronounced on 04.02.2021 after considering the conduct of the appellant and the facts of the case.

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