TaxTMI 
TaxTMI 
2017 (11) TMI 1058
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....these appeals are clubbed, heard and disposed of by this consolidated order. I.T.A. No. 3355/Mum/2017 (AY 2010-11) 3. First of all we take up assessee's appeal in ITA No. 3355/Mum/2017(AY 2010-11). The grounds of appeal are mentioned herein below:- 1.0 On facts and circumstances of the case and in law, Ld. CIT(A) erred in upholding the re-opening of assessment as valid on ignoring the fact that there is no reason to believe of escapement of income and in absence of fresh tangible material and independent application of mind, thus notice u/s 148 and consequential re-assessment order u/s 147 is bad in law 2.0 On facts and circumstances of the case and in law, Ld. CIT(A) erred in confirming the disallowance of Rs. 19,30....
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....on and works contractor. The return on income declaring total income of Rs. 32,13,854/- was filed on 21.09.10. Subsequently, information was received by the AO from DGIT(Inv.), Mumbai related to bogus purchase entries received from the Sales Tax Department, Maharashtra. The AO had information that some of the parties from whom the assessee had made purchases were bogus and they are engaged in the business of providing bills without actual delivery of goods. The AO carried out investigations and after seeking reply from the assessee, disallowed the claim of purchase amounting to Rs. 1,54,45,712/- as bogus purchases and added the same to the total income of the assessee. Aggrieved by the order of AO, assessee preferred appeal before Ld. CI....
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.... the counsels for both the parties and we have also perused the material placed on record as well as the orders passed by revenue authorities. Before we decide the merits of the case, it is necessary to evaluate the orders passed by Ld. CIT(A). The Ld. CIT(A) has dealt with the above grounds raised by the revenue in para no. 5 of its order. The operative portion of the order of Ld. CIT(A) is contained in para no. 5.1 to 5.4 of its order and the same is reproduced below:- 5.1 In the appellant's submission, appellant states that they had submitted the following documents:- (a) Names and addresses of disputed purchase parties; (b) Ledger account of the suppliers; (c) Purchase bills; (d) Deliv....
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.... (g) CIT vs. Simit P. Sheth [38 Taxmann.com 385 (Guj.)] (h) CIT vs, Bholanath Poly Fab Pvt. Ltd. [355 ITR 290 (Guj.)] (i) CIT vs. Nangalia Fabrics Pvt. Ltd. [40 Taxmann.com 206 (Guj.)] (j) DCII vs. Rajeev C. Kalathi (ITA No.6727/Mum/2012) (k) ACIT vs. C. V. Sons (ITA No.2239/Mum/2012 & 2240/Mum/2012) (I) ITO vs. Eagle Impex (ITA No.5697/Mum/2010) (m) Madhukant B. Gandhi vs. ITO (ITA No. 1 950/Mum/2009) (n) CIT vs. President Industries [258 ITR 654 (Guj.)] (o) CIT vs. Baichand Ajit Kumar [263 ITR 610 (MP)] (p) CIT vs. Leaders Valves (P) Ltd. [285 ITR 435 (P&H)] (q) CIT vs. M. K. Brothers [163 ITR 249 (Guj.)] 5.3 In the appellant's su....
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.... appellant. Thus relying on the decision of Hon'ble Gujarat High Court, in the present case also by adopting 12.5%, the disallowance will be reduced to Rs. 19,30,714/-. AO's addition is upheld for Rs. 19,30,7141- and balance amount of Rs. 35,14,998/- is deleted. The ground of appeal is partly allowed. After having gone through the facts of the present case as well as considering orders passed by revenue authorities and submissions made by both the parties, we find that Ld. CIT(A) while dealing with the above grounds have considered the facts and based its findings by following the judgment of Hon'ble Gujrat High Court in the case of CIT Vrs. Simit P. Sheth. No new facts or contrary judgments have been brought on record before us ....