2018 (5) TMI 351

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....common issue raised in the assessee's appeal relates to validity of reopening u/s. 147 of the Act. At the outset, the ld. Counsel of the assessee submitted that he shall not be pressing for this ground, hence, ground relating to the validity of reopening is dismissed as not pressed. 3. The second common issue raised relates to sustenance of addition out of the alleged bogus purchases by the ld. Commissioner of Income Tax (Appeals). 4. In Revenue's appeal, the issue raised is that the ld. Commissioner of Income Tax (Appeals) erred in reducing the addition made by the Assessing Officer. 5. Brief facts of the case are as under: In this case, the Assessing Officer had received information from the Sales Tax Department that the asses....

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....ions of Sec 147 of the 1 T Act, 1961, had issued notices u/s 148, which were duly served upon assessee. 6. During the course of assessment proceedings, it was noticed that the purchases from above referred hawala parties were not supported by credible documentary evidence such as transportation bills, delivery challans, goods receipt note, other receipts, etc. In compliance, the appellant could not furnish credible documentary evidences to substantiate the above purchases as well as the quantitative details of raw material vis-avis the finished goods to establish the genuineness of the above purchases. The assessee however, contended that he was engaged in the business of manufacturing and sale of electric resistance, and the raw materia....

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....gainst the above order, for assessment year 2009-10, the assessee and the Revenue are in cross appeal and for assessment year 2010-11, the assessee is in appeal before us. 10. We have heard both the counsel and perused the records. As regards merits of addition, we find that credible and cogent information was received in this case by the assessing officer that certain accommodation entry provider/bogus suppliers were being used by certain parties to obtained bogus bills, assessee was found to have taken accommodation entry/bogus purchase bills during the concerned assessment year from different parties. Based upon this information assessment was reopened. The credibility of information relating to reopening remains unassailed. Furthermo....

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....on is duly supported by Hon'ble Apex Court decision in the case of Sumati Dayal 214 ITR 801 and Durga Prasad More 82 ITR 540. In the present case the assessee wants that the unassailable fact that the suppliers are non-existent and thus bogus should be ignored and only the documents being produced should be considered. This proposition is totally unsustainable in light of above apex court decisions. 12. In these circumstances learned departmental representative has referred to Hon'ble Gujarat High Court decision in the case of Apex Appeal No. 240 of 2003 in the case of N K Industries vs Dy CIT, order dated 20.06.2016, wherein hundred percent of the bogus purchases was held to be added in the hands of the assessee and tribunals restrictio....