TaxTMI 
TaxTMI 
2017 (11) TMI 253
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....l read as under: 1) On the facts and circumstances of the case, the learned CIT(A) erred in confirming the action of the AO by sustaining the addition of Rs. 4,99,55,341/-. The order of the ld. CIT(A) is bad in law, against the principle of natural justice, void ab initio and the sustaining of the re-opened assessment is also liable to be quashed. 2) On the facts and circumstances of the case, the learned CIT(A) erred in confirming the addition of alleged purchases from bogus hawala parties amounting to Rs. 4,99,55,341. The appellant did not enter into any transaction with the bogus hawala parties at all and therefore the said addition of Rs. 4,99,55,341 is liable to be deleted. 4. In this case addition was made by the ....
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....stablish that goods have actually been delivered/supplied. The assessee was also asked to furnish its explanation on the purchases purported to have made from the aforesaid parties and the details of brokers/agents through whom purchases were claimed to have been made by the assessee including Name, Address, Contact Number etc. to prove the genuineness of the transaction. The assessee was also asked to show cause as to why the expenditure claimed in respect of purchases shown to have made from the aforesaid dealers should not be disallowed. 4.4 The assessee in his reply has furnished copies of (a) ledger a/c's of the purchase party; (b) Purchase Bill; and (c) payment details to purchase parties. However, till date, the assessee....
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....totality of facts, surrounding circumstances and human probability for arriving at a conclusion as held in CIT Vs. Durga Prasad 82 ITR 540 (SC) and Sumati Dayal Vs. CIT (1995) 214 ITR 801 (SC). (iii) The purchases from hawala operators falls within the ambit of the term 'colourable devices' and the Hon'ble Supreme Court observed in the case of McDowell and Co. Ltd. Vs. CTO 154 ITR 148 that "Tax planning may be legitimate provided it is within the framework of law. Colourable devices cannot be part of tax planning and it is wrong to encourage or entertain the belief that it is honourable to avoid the payment of tax by resorting to dubious method. It is obligation of every citizen to pay the taxes honestly without resorti....
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....ide any confirmation from any of the party. Assessee has also not been able to produce any of the parties. Necessary evidence relating to transportation of the goods was also not on record. In this factual scenario, it is amply clear that assessee has obtained bogus purchase bills. Mere preparation of documents for purchases cannot controvert overwhelming evidence that the providers of these bills are bogus and non-existent. 8. The Sales Tax Department in its enquiry have found the parties to be providing bogus accommodation entries. The assessing officer also issued notices to these parties at the addresses provided by the assessee. All these notices have returned unserved. Assessee has not been able to produce any of the parties. Neith....
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....others has been dismissed by the Hon'ble Apex Court vide order dated 16.01.2017. 10. We further note that Hon'ble Rajasthan high court has similarly taken note of decisions of the apex court on the issue of bogus purchases in the case of CIT Jaipur vs Shruti Gems in ITA No. 658 of 2009. The Hon'ble High Court has referred to the decision of CIT Jaipur vs. Aditya Gems, D. B. in ITA No. 234 of 2008 dated 02.11.2016, wherein the Hon'ble Court had inter alia held as under: "Considering the law declared by the Supreme Court in the case of Vijay Proteins Ltd. Vs. Commissioner of Income Tax, Special Leave to Appeal (C) No.8956/2015 decided on 06.04.2015 whereby the Supreme Court has dismissed the SLP confirmed the order dated 09.12.201....