TaxTMI 
TaxTMI 
2012 (2) TMI 598
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....appeal is concerned grounds No. 1 to 3 and 5 are general in nature and as per the statement of Ld. AR, Mr. S.N.Soparkar not relevant to decide the main issue. In view of his statement these grounds are hereby dismissed being general in nature. 3. The main issue of the appellant is about the confirmation of addition of Rs. 12,71,471/- on account of alleged bogus purchases of the assessee. Likewise, due to the part relief Revenue has also challenged that Ld. CIT(A) has erred in restricting the addition of Rs. 41,04,903/- to Rs. 12,31,471/-. These two appeals are connected to each other, hence consolidate and hereby decided by this common order. 4. Facts in brief as emerged from the corresponding assessment order passed u/s.143 r.w.s. 147 of....
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....ceipt, transportation details, number of weighment, excise gate pass etc., no document was produced during the assessment proceedings. After examining the bank accounts and other evidences AO has held that alleged purchases from Bhavna Trading Co., Minaxi Enterprise and Arun Ind. Corporation was not genuine purchase and therefore the said amount of bogus purchases of Rs. 41,04,903/- was taxed in the hands of the assessee. It may not be out of place to mention that books of account u/s.145(3) of the Act was rejected and profit of the assessee was estimated at Rs. 5 lakh. Both the additions were contested before the Ld. CIT(A). 5. After examining the book results of the past year, Ld. CIT(A) has held that there was a regular arrangement of ....
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....ce the seller. It is a settled law that onus is on the assessee to establish the genuineness of the purchase. The assessee has produced various evidence with regard to the receipt of the goods by it, it. Stock register, receipt of weigh-bride for weighment of goods purchased by the assessee, octroi receipt of the payment of octroi duty etc. After considering the entire material, we are of the opinion that the assessee did not purchase the goods from the parties mentioned in the sales bill. At the same time, it did purchase the goods from some other suppliers, may be without bill. Therefore, purchase rate as mentioned in the alleged sales bill cannot be accepted. Any person indulging in the practice of purchasing goods from the grey market a....
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....he sale itself. The Tribunal also found that the assessee has maintained the quantitative details in respect of materials purchased and sold. Considering peculiar facts of that case, the Tribunal arrived at the conclusion that it would be fair and reasonable to estimate the addition at Rs. 50,000/- as against the addition of Rs. 27,39,407/- made by the Assessing Officer. However, the learned Commissioner of Income Tax (Appeals) considering the facts of the assessee's case, has sustained the addition at 12.5%. While doing so, he has also relied upon the decision of the Tribunal in the case of M/s. Vijay Proteins Ltd. 55 TTJ (Ahd) 76. In the case of M/s. Vijay Proteins Ltd., the Tribunal has sustained the addition of 25% of the bogus purchas....