TaxTMI 
TaxTMI 
2017 (9) TMI 568
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....espectively. The assessee has raised identical grounds of appeal. The facts of both the AY are not much in variance. Thus, both the appeals were heard together and are decided by a consolidated order. For appreciation of facts, we are referring the fact for AY 2010-11 in ITA No. 6340/Mum/2016. The assessee has raised the following grounds of appeal: 1. On the facts and in the circumstances of the case and in law the Ld CIT(A) erred in confirming the action of Ld AO for reopening of the completed assessment u/s. 147 of the IT Act 1961 without assigning any valid reason and the reason assigned for doing so are wrong and contrary to the provision of Income Tax Act and rules made there under. 2. On the facts and in the circums....
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....t appeal before us. 3. We have heard the ld. Authorized Representative (AR) of assessee and ld. Departmental Representative (DR) for the Revenue and perused the material available on record. First ground of appeal relates to the reopening of the assessment u/s 147 of the Act. The ld. AR of the assessee has not argued anything against this ground of appeal. Thus, this ground of appeal is treated as not pressed. Hence, the same is dismissed as not pressed. 4. Ground No.2 relates to disallowance of unexplained expenses/ bogus purchases @ 30%. The ld. AR of the assessee argued that assessee is in the business of manufacturing of engineering goods and also doing labour job. The assessee purchased material from M/s Bharat Sale Corporation f....
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....rough the orders of authorities below. During the assessment proceeding, the AO has noticed that the assessee has entered into transaction for purchase from the following parties: S.No. Name of the supplier TIN Amount 1 Bharat Steel Corporation 27640720112V 7,29,872 2 Om Enterprises 27680554123V 3,18,213 TOTAL 10,48,085 The AO asked the assessee to produce the various details like copy of ledger account, invoice, delivery challan, Lorry receipt, Bank Statement, Octroi receipt, goods receipt and not tally between sales and purchases. The AO also send the notice to the parties u/s 133(6). In response to the queries of AO, the assessee field his reply dated 30.02.2015. In the rep....
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....he ld. CIT(A) examined the Gross Profit (G.P) or Net Profit (N.P) ratio earned by assessee during the relevant AY. The AO made the disallowance of entire purchases from two alleged bogus dealers. The ld. CIT(A) sustained 30% of the purchases without considering the G.P. Ratio for the year under consideration. We have noticed that neither the AO nor the ld. CIT(A) rejected the statement of account nor disputed the sales of the assessee. We are of view that under Income-tax Act only real income can be taxed by the Revenue. We are further of the view that in case whole transaction is not verifiable due to various reasons, the only taxable is the taxable income component and not the entire transaction. The Hon'ble Bombay High Court in case of C....