TaxTMI 
TaxTMI 
2017 (12) TMI 812
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....erred to as "the Tribunal) in ITA No.1345/Ahd/2012 and ITA No.1499/Ahd/2012 for assessment year 2008-09 and ITA No. 1489/Ahd/2012 and ITA No. 1500/Ahd/2012 for assessment year 2009-10 by proposing questions, stated to be substantial questions of law. The first question is common in all the appeals, whereas the second question has been proposed in Tax Appeals No.923 and 924 of 2017: "(A) Whether the Appellate Tribunal has erred in law and on facts of the case in deleting the addition of Rs. 5,69,06,548/- made on account of bogus purchase ? [In Tax Appeals No.922 and 924 of 2017 which relate to assessment year 2009-10, the amount is Rs. 3,03,30,619/-] (B) Whether the Appellate Tribunal has erred in law and on facts of the ca....
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.... delivered any goods like oil seeds, oil cakes or any other item mentioned in the bills and that the vehicle numbers written on the bills were also fictitious. 5. Upon perusal of the details submitted by the assessee, the Assessing Officer found that the assessee had shown purchase of Rs. 1,03,43,718/- from M/s. Vishal Traders during assessment year 2008-09 and had also shown purchases of Rs. 4,65,62,830/- from M/s. Nagraj Traders, Harij, whose purchases were also found to be made from M/s. Vishal Traders of Virpur. The assessee was called upon to substantiate the claim of purchases from M/s. Vishal Traders, but the assessee failed to do so. The Assessing Officer, accordingly, treated all the purchases made from M/s. Vishal Traders and M....
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....ssing Officer, namely, sales, closing stock and consumption details, it was crystal clear that the purchases were actually made by the assessee and such items were consumed in due course and also sold to various parties. The Tribunal was of the view that had it been the case that the concerned purchases were bogus, then it would not have been possible for the assessee to consume the same and in turn to also sell the same. The Tribunal followed the decision of this court in the case of CIT v. Gujarat Ambuja Export Ltd. rendered in Tax Appeal No.840 of 2013, wherein purchases made from this very Vishal Traders were doubted and the court had taken a view that the estimate at 5% of such alleged bogus purchases would meet the ends of justice and....
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....eals) or the Tribunal, is based upon an estimate. Significantly, in Sanjay Oil Cake Industries v. CIT (supra), this court has held that whether the estimate should be at a particular sum or at a different sum can never be an issue of law. Under the circumstances, whether the addition on account of bogus purchases should be estimated at 25% or at 5% cannot be said to be an issue of law giving rise to any question of law. 10. Question (B) which arises in Tax Appeals No.923 and 924 of 2017 relates to deletion of the addition of Rs. 3,95,28,000/- and Rs. 4,52,75,028/- for assessment years 2008-09 and 2009- 10 respectively, made on account of unexplained cash deposits in the bank accounts. As the assessee did not appear with the required deta....