TaxTMI 
TaxTMI 
2012 (2) TMI 548
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....-08 all dated 30.10.2009 for the assessment year 2003-2004 and 2004-05 respectively passed under section 250 r.w.s.143(3)/147 of the I.T. Act. I) ITA NO.3407/Ahd/09 : A.Y. 2003-04 - By the Department: 2. A solitary ground of the Revenue is that the ld.CIT (A) erred in deleting the addition of Rs. 42,98,107/- on account of bogus purchases and payments. II) ITA NO. 46 & 47/Ahd/10 : A.Y. 2003-04 & 04-05 - By the assessee: 2.1. Though the assessee had raised five identical grounds for both the AYs under dispute, Ground No.5 being general and no specific issue involved, it does not survive for adjudication. With regard to Ground No.1, the assessee had challenged the ld.CIT (A)'s stand in confirming the re-opening of the assessments u....
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....ay Proteins Ltd. 58 ITD 528, entire cost of purchases cannot be added in such cases. This view is also supported by the judgments of ITAT in the cases of Omkar Pharma, Shree Raj Industries, Amit Processors, Prem Kumar Rathi etc., 5.5.3. Taking into account all the relevant facts of the case, I find that 30% of the purchase cost will be a reasonable amount which can be added in this case to cover the gain of the appellant. This will take care of violation of section 40A(3) by making cash purchases from the open market and also the savings in terms of non-payment of sales tax, octroi and other statutory duties. Therefore, out of total addition of Rs. 61,40,152/- made by the AO on account of purchases, an amount of Rs. 18,42,045/- bei....
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....Mardia Copper Extrusion Pvt. Ltd in ITA NO.4290/Ahd/1995 - AY 1992-93: After taking into account the rival submissions and also the reasoning of the CIT (A), the Bench had observed thus: "32. It only remains for us to consider, the rather unusual observation, if we may say so with respect, of the CIT (A) that if it is found that Mahakali Roadlines have not transported the goods, then they might have been transported by some other transporter and the only thing which the AO can do is to disallow the transport charges but not the purchases. We are totally unable to understand or appreciate the logic of the observation. If the claim of transportation of the goods is found to be bogus or not genuine, the logical result would n....
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....the purchases claimed to have been made by the assessee from Girnar Sales Corporation and Shiv Metal Corporation is duly recorded in the books of the assessee and has been reflected either in the sales or in the closing stock, is not controverted. On these facts, the decision in the case of Kulubi Steel [(supra) - ACIT v. Kulubi Steel - ITA No.1568/Ahd/2008] would be squarely (applicable) wherein the ITAT held as under: '8. From the above, it is evident that the assessee did not make any effort to controvert the finding recorded by the DDIT (Investigation) and it made no efforts to produce the seller parties on the other hand it claimed that it is not his responsibility to produce the seller. It is a settled law that onus is on the....
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....ounsel that the addition sustained is excessive. In support of this contention he referred to the decision of the Tribunal in the case of ITO v. Sun Steel 92 TTJ (Ahd) 1126 wherein the Tribunal has sustained the addition of Rs. 50,000/- on account of bogus purchases. However, we find that the facts in the above case were different. In the above case, the assessee has shown purchases of Rs. 27,39,410/-, sale of Rs. 28,17,207/- and GP at Rs. 94,740/- The assessing officer made the addition of Rs. 27,39,407/- for bogus purchases. If the above sum is added to the GP, the GP works out to Rs. 28,34,1247/- (sic) 28,34,147/- which was more than the sale itself. The Tribunal held that it is impossible that the GP is more than the sale itself. The Tr....
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.... of the assessee's case are identical, we respectfully following the above decision of the ITAT, direct the assessing officer to disallow 12.5% of the purchase made during the year under consideration". 7.1. Taking into account the facts that the present assessee who has been maintaining cash book, purchase register, sales register, stock register, ledger account etc., and also his case comes under the purview of the provisions of section 44AB Act, we are of considered opinion that his case is squarely covered by the recent decisions of the earlier Benches (supra) on similar issues. 7.2. In an over all consideration of the facts of the assessee's case narrated above and also in conformity with the latest findings of the earlier Bench ....