2017 (10) TMI 523

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....venue : Shri. Ajay Singh ORDER PER BENCH: These are cross appeals by assessee and revenue against common order of CIT-A dated 30/06/2016 for the above assessment years. 2. These cases involve bogus purchases. The Assessing Officer has made addition of 100% of the bogus purchases, which resulted in addition of Rs. 71,58,777/- for A.Y.2009-10 and Rs. 81,64,848/- for A.Y.2011-12. The additions ....

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....TR 451, etc, as quoted above, in my considered opinion, disallowance @ 12.5% will be reasonable. The disallowance @ 12.5% of bogus purchases is worked out at Rs. 8,94,847/- (71,58,777 x 12.5/100), which is slightly more than suppressed GP of Rs. 8,10,834/-, therefore, the disallowance to the extent of Rs. 8,94,847/-, out of hawala purchases of Rs. 71,58,777/-, is sustained, as requested by the Ld.....

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..... 13,49,822/-, therefore, the disallowance to the extent of Rs. 13,49,822/-, out of hawala purchases of Rs. 81,64,849/-, is sustained as requested by the Ld. AR and balance amount of Rs. 68,15,027/- (Rs 81,64,849/- Less Rs. 13,49,822/-), is hereby deleted. 3. Against the above order of learned CIT(A) revenue and assessee are in cross appeal. 4. We have heard both the counsel and perused the rec....

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....at High Court decision in the case of tax appeal no 240 of 2003 in the case of N K Industries vs Dy CIT, order dt 20/06.2016, wherein hundred percent of the bogus purchases was held to be added in the hands of the assessee and tribunals restriction of the addition to 25% of the bogus purchases was set aside. The special leave petition against this order alongwith others has been dismissed by the h....