2017 (3) TMI 1372

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....ER Per Pradip Kumar Kedia, AM The captioned appeal by the Assessee is directed against the order of the Commissioner of Income-tax (Appeals)-2, Rajkot dated 23.11.2016 passed for Assessment Year 2010-11. 2. The substantive grievance of the assessee is against the order of the CIT(A) in confirming addition of Rs. 16,84,112/- on account of bogus purchases. 3. Briefly stated, the assessee....

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.... parties and proof towards payment made through bank. The assessee also submitted that the purchases are not bogus per se, but the issue raised by the VAT Department is limited to non-payment of VAT collected by the recipients from the assessee and not paying the same to the exchequer. It was submitted that the assessee has paid the amount of VAT payable by the sellers with interest and penalty an....

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....ntical facts, the Assessing Officer estimated gross profit percentage @ 11% for the similar Hawala purchases alleged. The ld. AR next relied upon the decision of the Bombay Bench of the Tribunal in the case of Imperial Imp & Exp. Vs. ITO in ITA No.5427/Mum/2015, order dated 18.03.2016 and submitted that on similar facts the Bombay Tribunal has allowed the appeal of the assessee and set aside the a....

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....m the purchaser of the goods, i.e. the assessee. Therefore, it is ostensible that the purchases are not found to be bogus per se by VAT Department. In the case of non-existing purchases, as understood by the IT Department based on the reference made by the VAT authorities, there was no occasion for the VAT authorities to collect VAT thereon. The collection of VAT tantamount to existence of transac....