2019 (7) TMI 23

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....ed 11.11.2016 and 22.11.2016 for the assessment years 2010-11 and 2011-12 respectively.   2. First we shall take up the cross appeals of the assessee and the Revenue involving the assessment year 2010-11 for adjudication.   ITA No.2916/PUN/2016 - A.Y. 2010-11 - By Assessee 3. The grounds raised by the assessee in this appeal are as under :- "1] The additions of Rs. 2621099/- confirmed by the CIT(A)-1, Nashik should be deleted fully as the so called bogus purchases were not bogus and the same have been paid through bank transactions. 2] The assessment reopened u/s 148 should be held as improper. 3] The appellant craves leave to add/alter/amend/delete any of the grounds of appeal."   4. Be....

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....aded for restricting the disallowance @ 10% of the bogus purchases.  Meanwhile, we find the Jurisdictional High Court has decided similar issue in the case of Pr.CIT vs. M/s. Mohommad Haji Adam & Co. vide Income Tax Appeal No.1004 of 2016 dated 11.02.2019.  In para 8 of this judgement (supra), we find the Hon'ble Jurisdictional High Court dismissed the appeals filed by the Revenue with the following observations :- "8. In the present case, as noted above, the assessee was a trader of fabrics. The A.O. found three entities who were indulging in bogus billing activities. A.O. found that the purchases made by the assessee from these entities were bogus. This being a finding of fact, we have proceeded on such basis. Despite t....

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....be levied on the same price. We have to reduce the selling price accordingly as a result of which profit comes to 5.66 %. Therefore, considering 5.66 % of Rs. 3,70,78,125/- which comes to Rs. 20,98,621.88 we think it fit to direct the revenue to add Rs. 20,98,621.88 as gross profit and make necessary deductions accordingly. Accordingly, the said question is answered partially in favour of the assessee and partially in favour of the revenue."   8. Following the above said ratio of the judgment (supra), the Coordinate Bench of the Tribunal remanded the issue to the file of the Assessing Officer in the case of Shri Nandkishore Kishanrao Dilerao vs. ITO vide ITA No.1851/PUN/2018 for the assessment year 2010-11 dated 30.04.2019 as per th....

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....n'ble Jurisdictional High Court (supra).  Rather, the addition should be restricted to the extent of difference between the "gross profit rate on genuine purchases" and "gross profit rate of hawala purchases".  For these purposes, the matter stands remanded to the file of the Assessing Officer.  Considering the commonality of the facts, we are of the opinion the issue under consideration should also be remanded to the file of the Assessing Officer with similar direction as given in para 4 of the order of the Tribunal (supra).  The Assessing Officer is also directed to examine the arguments relating to the change of opinion while passing a speaking order on technical ground after granting reasonable opportunity of being h....