2019 (1) TMI 885

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....oneously and unjustly added a sum of Rs. 4,84,993/- (Rupees Four Lakhs Eighty Four Thousand Nine Hundred and Ninety Three only) to the returned income of Rs. 4,08,34,809/- (Rupees Four Crores Eight Lakhs Thirty Four Thousand Eight Hundred and Nine only) of the assessee by unjustly and erroneously deeming Rs. 4,84,993/- (Rupees Four Lakhs Eighty Four Thousand Nine Hundred and Ninety Three only) being 8% of the deemed un-genuine purchases of Rs. 60,62,422/- (Rupees Sixty Lakhs Sixty Two Thousand Four Hundred and Twenty Two Only) (net purchase without VAT) after allowing 4% VAT from the said deemed un-genuine purchase as profit earned from such purchases. 3. Briefly stated the facts of the case are that the information had been received to ....

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....respect of the alleged purchases of the above mentioned parties. Also the assessee was made aware of the fact that notice u/s. 133(6) of the Act had not been complied with. The assessee was further asked to produce the alleged party for cross examination. In response to the same, the assessee had furnished copies of purchase invoices, ledger accounts and bank statements effecting the payments against purchases from the said party. On perusal of the bills, it was noticed that the VAT/TIN No. of the parties matches with the VAT/TIN No. appearing in the list of hawala dealer identified by the Sales-tax Department. In view of the specific information received from the Sales-tax Department that the alleged purchases/expenses are not genuine a....

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....motive behind obtaining bogus bills thus, appears to be inflation of purchase price so as to suppress true profits. Considering the facts of the case as well as the various case laws cited (supra), I estimate the suppressed profit to the extent of 12% of the purchases made from the bogus entities as the suppressed profit element embedded in such purchases and allow to reduce the 4% VAT paid from the estimation 12%. This estimation is in addition to the GP shown by the appellant. Accordingly, these ground of appeal are partly allowed. 8. Against the above order, the assessee is in appeal before us. 9. We note that there is no appeal by the Revenue. 10. Upon careful consideration we find that assessee has provided the documentary evi....