2017 (6) TMI 299

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....03.2015 passed under section 144r.w.s. 147 of the Income Tax Act, 1961 [hereinafter referred to as "the Act"] without appreciating the facts and circumstances of the case. The Appellant strongly objects to the addition made in the assessment order. 2. Treating the purchases as bogus / non-genuine unjustified -Rs.36.32.266/- (i) The Ld. CIT(A) erred in upholding the action of the Ld. A.O in making addition of Rs. 36,32,266/- being purchases made from M/s. Romes Metal & Tubes Pvt. Ltd, M/s. Reliable Metal (India), M/s. Krishana Steel Industires and M/s. Nerolac Metal  (India) treating the same as bogus / non-genuine without appreciating the facts and circumstances of the case. Hence, the addition of Rs. 36,32,266/- is u....

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....as received from the DGIT(Inv.), Mumbai, that there was a scam unearthed by Sales Tax Department regarding issue of hawala bills and accommodation entries by several parties in Mumbai, availed by several assessee's to inflate their purchases or expenses and thereby reducing their tax liabilities. As per the information, the appellant also indulged in bogus purchases with four parties, to the tune of Rs. 36,32,266/-. On the basis of the information, the assessment was reopened, by issuing notice u/s 148 of the Act on 19-02- 2014. Assessment u/s 143(3) r.w.s 147 of the Act was passed on 20-03- 2014, assessing the total income at Rs. 38,97,920/-. 3.2 During the course of reopened assessment proceedings, to ascertain the genuineness of p....

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....ted separately. 4. Upon assessee's appeal, learned CIT(A) confirmed the Assessing Officer's action. Against the above order, assessee is in appeal before ITAT. 5. I have heard both the Counsel and perused the records. 6. The learned Counsel of the assessee pleaded that addition in this case be restricted to 12.5% of the bogus purchases as held by the Hon'ble Gujarat High Court in the case of CIT v. Simit P.Sheth [(2013) 38 Taxmann 385 (Guj.)]. 7. Per contra, learned Departmental Representative referred to the decision of the Hon'ble Gujarat High Court decision in the case of N.K.Industries v. DCIT vide order dated 26.06.2016 wherein addition on account of bogus purchases were restricted to 25% by the ITAT. The Hon'ble High Court....