2017 (6) TMI 1186

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....holding the action of the AO in making an addition of Rs. 51 ,08,901/- u/s 69C of the Act being alleged bogus purchases from alleged hawala dealers by confirming the same at 25% of the original addition amounting to Rs. 12,77,226/-. 2 On the facts and circumstances of the case and in law, the CIT(A) erred in confirming the chargeability of Interest u/s 234A, 234B & 234C. 3. The following grounds have been taken by the revenue:- 1.1 Whether on the facts and in the circumstances of the case, and in law, the Hon'ble CIT(A) erred in not confirming addition at 100% of bogus purchases of Rs. 51,08,901/- out of total purchases of Rs. 1,49,41,933/- despite holding that the purchases of Rs. 51,08,901/- were not genuine and the assessee ....

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....the extent of Rs. 51,08,901/-, by debiting these bogus bills, in the Profit & Loss account. Accordingly, a notice u/s. 148 of the I.T. Act, 1961, was issued, after recording reasons to believe that the income of the assessee, for A.Y.2010-11, has escaped the assessment. During the course of re-assessment proceedings, in order to justify the genuineness of purchases, the notices u/s.133(6) of the I.T. Act, 1961, were issued on given addresses, but returned back unserved with a remark "not known". In view of these facts, the AO disallowed entire hawala purchases, amounting to Rs. 51,08,901/- and added back to the total income of the assessee. 6. By the impugned order CIT(A) restricted the addition to the extent of 25% of bogus purchases af....

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.... Sanjay Oil Cake Industries 316 ITR 274 and Vijay Proteins Ltd., 58 ITD 428 restricted the addition to the extent of 25%. 9. It was „the contention of learned AR that facts of Sanjay Oil Cake Industries (supra) were entirely different. Our attention was invited to the ledger account of all the suppliers in the assessee‟s books, invoice issued by them, relevant extract of the bank statement showing payment made in respect of purchases made from these parties. Our attention was also invited to the statement showing movement of stocks as maintained by the assessee. We found that assessee has maintained stock register with regard to the purchase and sale of goods. 10. Learned AR placed on record the order of the Tribunal in as....