2018 (3) TMI 576

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....: These are appeals by the assessee against the common order of the Commissioner of Income Tax (Appeals) for the assessment years 2009-10 and 2010- 11. 2. The first common issue relates to the validity of reopening and the second common issue relates to the confirmation of disallowance of 100% of bogus purchase amounting to Rs. 2,90,784/- for assessment year 2009-10 and Rs. 1,20,089/- for as....

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....Ramanand Sales Pvt. Ltd.   13,000/- 4 Blue Moon Trading Pvt. Ltd.   1,07,089/-   Total 2,90,784/- 1,20,089/- 4. In view of the above facts, the relevant details such as copy of the affidavits filed by these hawala parties, their statement recorded by the Sales Tax Department, etc, were obtained by the Assessing Officer. The examination of these detai....

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....ailable on record, the Assessing Officer passed the above orders, by adding the hawala purchases. 5. During the assessment proceedings, the assessee was asked to produce the furnish details such as vehicle no, type of vehicle, transport receipts, octroi receipts, etc, for establishing movement of goods from these suppliers to the assessee. In compliance, the assessee failed to produce the satis....

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....l before the ITAT. 8. I have heard both the ld. Counsel and perused the records. I find that in this case the sales have not been doubted it is settled law that when sales are not doubted, 100% disallowance for bogus purchase cannot be done. This proposition is supported from Hon'ble jurisdictional High Court decision in the case of Nikunj Eximp Enterprises. However, the facts of the present ca....