2017 (10) TMI 878

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....e 'Act'). As common issues are involved, we are proceeding to dispose them off through a consolidated order for the sake of convenience. 2. The ground raised by the assessee in this appeal is that the Ld. CIT(A) has erred in estimating net profit @ 6% on the alleged unproved purchases disregarding the submission and documentary evidence of the assessee. Also it is stated that the reopening made by the AO u/s 147/148 be quashed. 3. The cross appeal filed by the Revenue is that the Ld. CIT(A) erred in restricting the disallowance made u/s 69C (i) from Rs. 71,25,181/- to Rs. 4,27,510/- in A.Y. 2009-10 and (ii) from Rs. 1,95,17,832/- to Rs. 11,71,069/- in A.Y 2011-12 without appreciating the decision of the Hon'ble Gujarat High Court and ....

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....Hawala Dealer A.Y. Amount in Rs. 1 2 3 4 5 27910623885V DONEAR TRADING PVT. LTD. AACCD4946K 2011-12 3,393,447 27050634058V LINUS SALES AGENCY PVT. LTD. AABCL2934N 2011-12 3,409,568 27190653866V UNIVERSAL TRADING COMPANY AJIPJ7859H 2011-12 307,652 27530620893V VRUKSHA ENTERPRISES BGMPS2816M 2011-12 4,160,944 27360694658V CHAITANAYA ENTERPRISES AJXPS1279D 2011-12 236,420 27930587111V NEWZONE MULTITRADE PVT. LTD. AAECM7719B 2011-12 620,460 27200244472V SHREYAS MARKETING AGENCY AADHK8405J 2011-12 831,822 27270244094V SHREE GANESH TRADING CO. AALPM8933D 2011-12 ....

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....ppeal before the Ld. CIT(A). The Ld. CIT(A) has held that (i) in the AY 2009-10, the bogus purchases are of Rs. 71.25 lakhs out of total purchases of Rs. 1.93 crore which amount to 37% and in the AY 2011-12 the said purchases are of Rs. 1.95 crore out of total purchases of Rs. 2.98 crore which amount to around 66%, (ii) without the impugned purchases, the sale and the profit on sale as shown by the assessee would not be possible. The Ld. CIT(A) relied on the decision in the case of Shri Jitendra Motani (ITA No.5927/Mum/2009 for AY 2006-07 and ITA No.3024 to 3028/Mum/2008 for AY 2001-02 to 2003-04 and 2005-06) and the judgment of the Hon'ble Gujarat High Court in CIT vs. Simit P. Shah 356 ITR 451 and estimated the profit @ 6% on the bogus....

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....In the case of N.K Proteins Ltd. (supra), there was search proceedings conducted by the Revenue at the office premises of the assessee wherein blank signed cheque books and voucher of number of concerns were found. Accordingly, the purchases made from these concerns were treated as bogus by the AO and the entire deposits in bank accounts of these parties were treated as assessee's income on protective basis. On appeal, the ITAT restricted the addition on account of alleged bogus purchases at 25% i.e. Rs. 73,23,322/- of the total purchases amounting to Rs. 2,92,93,288/-. On further appeal, the Hon'ble High Court modified the order of the Tribunal and directed for addition of entire bogus purchases. After hearing the counsels, the Hon'ble Sup....