2018 (11) TMI 698

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.... common and the appeals were heard together, these have been disposed of by this common order. 2. The issue raised in Revenue's appeal is that the learned CIT(A) erred in restricting the disallowance on account of bogus purchases to 12.5% of the bogus purchases. 3. The issue raised in assessee's appeal was that learned CIT(A) erred in upholding the reassessment and sustaining 12.5% of the disallowance on the part of bogus purchases. Since the facts are identical, we are referring to the facts and figures from A.Y. 2009-10. 4. Brief facts of the case are that assessee-company is in the business of construction, repairs, interiors, infrastructure and engineering. Assessment order in this case was reopened upon information that assess....

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....and assessee was requested to produce the parties which assessee failed to do so. In these circumstances referring to certain case laws, AO made disallowance by concluding as under:- "In view of the incriminating evidences gathered by the sales-tax department, as discussed above, the fact that there was no reply to the notice issued under section 133(6), and the fact that the assessee could not produce this party for examination despite specific request, it is clear that the purchase allegedly made from this party is bogus. Thus, the entire purchases aggregating to Rs. 1,35,73,451/- is being added back as bogus purchases" 7. Against the above addition, assessee appealed before the learned CIT(A). Learned CIT(A) referred to case ....

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....e on record. 10. The special leave petition against this order has been dismissed by the honourable Supreme Court in its decision dated 4/ 5/ 2018 S L P CIVIL Diary no 12670/2018 by following order: Heard Delay condoned The special leave petition is dismissed. Pending applications, if any, shall stand disposed of. The ld. Authorized Representative contends that this is not a dismissal of SLP simplicitor. 11. Upon careful consideration we find that assessee has provided the documentary evidence for the purchase including the transportation details. No shortcoming whatsoever has been noted by the AO in this regard. Adverse inference has been drawn due to the inability of the assessee to produce the....