2015 (8) TMI 1203

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....account of bogus purchases. In the A. Y.2000-01, the assessee is aggrieved for addition made on account of bogus purchases. The revenue in its appeal is aggrieved for deletion of 75% of the bogus purchases. We found that originally appeal of the assessee and revenue was disposed off by the Tribunal vide order dated 9-9-2010, wherein appeal filed by the revenue with regard to deletion of 75% of bogus purchases was allowed whereas appeal filed by the assessee was allowed in part with regard to validity of reopening. However, addition with regard to bogus purchases was confirmed by the Tribunal. 3. The matter further travelled to the Hon'ble Bombay High Court, wherein the Hon'ble Bombay High Court vide its order dated 9-1-2012 set aside the o....

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....ough the orders of the authorities below as well as order of the Hon'ble High Court dated 9-1-2012. Facts in brief are that in the course of original assessment addition was made on account of bogus purchases. In an appeal filed before the Tribunal, the Tribunal has restored the matter back to the file of the AO for deciding afresh. In the second round the AO again confirmed the addition on account of bogus purchase. The CIT(A) deleted 75% of such bogus purchases and confirmed the addition with respect to 25% of the purchases. In the second round both assessee and revenue were in appeal before the Tribunal and the Tribunal vide its order dated 9-9-2010 confirmed the disallowance of entire purchase there by allowing revenue's appeal and dism....

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....ring the said assessment year, the Appellant had made the trading purchases of Rs. L4,29,18,015/- out of which Rs. 3,79,00,113/- was from the following 8 (eight) parties: S. No. Name of the party Amount of Purchase 1 M/s Pradeep Sales Rs.32,57,740/- 2 M/s Chirag Enterprises Rs.60,00,000/- 3 M/s J . M. Trading Rs.47,42,100/- 4 M/s Vijay International Rs.5,53,500/- 5 M/s Shradha Enterprises Rs.52,41 ,595/- 6 M/s Chem Corporation Rs.27,14,624/- 7 M/s Kothari Products Rs.84, 74, 754/- 8 M/s Samarth Enterprises Rs.69,15,800/-   Total Rs.3,79,00,113/-   3. Respondent No.1 disallowed the said purchases on the ground that the appellant could not prove the genuineness thereof as confirmation from the said p....

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....gs, the L/\O vide letter No. DCIT5(2)/Appeal/CIT(A)/11-12 dated 11.10.2011 submitted a report on the additional evidences submitted by the appellant, the relevant part of which may be reproduced as under:- "Before proceeding further, for the sake of convenience and ready reference, relevant part of provision of section 309 of Companies Act 1962 is reproduced as under: (5A) If any director draws or receives, directly or indirectly, by way of remuneration any such sums in excess of the limit prescribed by this section or without the prior sanction of the Central Government, where it is required, he shall refund such sums to the company and until such sum is refunded, hold it in trust for the company. (5B) The company shall not waive the....