2017 (12) TMI 1479

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....opening of assessment U/s.147 of the Income Tax Act for A.Y. 2010-11 on the basis of List uploaded on the website of the MVAT Department without any corroborative evidences as required for formation of belief for escapement of Income u/s.147 of the Income Tax Act. 2) On the facts and circumstances of the case, the Id. Commissioner of Income Tax (Appeals) erred in not providing adequate opportunity to verify the documents and statements based on evidences if any available with the Id. Assessing Officer and thereby the process of natural justice was denied and in view of the same the reopening is bad in law. 3) On the facts and circumstances of the case, the Id. Commissioner of Income Tax (Appeals) erred in upholding the disallowance of....

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....the sales tax department. Even the notices issued u/s.133(6) to purchase parties returned back unserved with the remarks 'not known' or 'left'. The AO held that mere filing of evidences in support of purchases and payments made through account payee cheques cannot be conclusive in a case where genuineness of delivery/transaction fs in doubt and held that the payments made through account payee cheques are not sacrosanct and by rejecting the books of account u/s. 145(3) proceeded to make an addition of Rs. 35,21,310/- being 12,5% of the total non genuine purchases of Rs. 2,81,70,477/-. 4. By the impugned order, CIT(A) confirmed the reopening, however he has confirmed the addition to the extent of 12.5% after giving further c....

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....ition made, The ITAT, Ahmedabad (C' Bench in the case of Vijay Proteins Ltd. vs. ACIT 58 ITD 0428 held that in similar circumstances, 25% of the purchase price accounted through fictitious invoices has to be disallowed. The Hon'ble High Court of Gujarat in the case of Sanjay Oil cakes v/s CIT 316 ITR 0274 dealt with similar case where some of the alleged suppliers who had issued bills to the assessee were not genuine as they were not traceable. The goods must have been received from other parties. The likelihood of the purchase price of these alleged purchases being inflated could not be ruled out and therefore the Hon'ble High Court has upheld the decision of CIT(A) and the ITAT disallowing 25% of the payments made to such part....