TaxTMI 
TaxTMI 
TaxTMI 
2019 (9) TMI 1073
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....11 in the matter of order passed U/s 143(3) r.w.s. 153A of the Income Tax Act, 1961 (in short, the Act). 2. All these appeals are being head together and for the sake of convenience and brevity, a consolidated order is being passed. 3. Firstly we take Revenue's appeals. In all the years under consideration, the revenue is aggrieved by the action of the ld. CIT(A) for restricting the addition on account of bogus purchases to the extent of 12.5% of such purchases. 4. Rival contentions have been heard and record perused. The brief facts of the case are that the assessee is in the business of trading of iron and steel, merchant and supplier. Assessee had filed return of income u/s.139 on 28.8.2008 declaring total income at Rs. 454,76,9587- ....
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....ed that the entire purchases cannot be added considering that its business is of trading of Iron & Steel and its sales have not been doubted nor the books of accounts have been rejected. It has been submitted that the appellant has maintained stock register and other necessary records to verify the purchase and sales. Although it has been alleged that the amount received from KAPTL was deposited in the account of MIL and then transferred to the accounts of different parties from where they were further transferred to other bank accounts and thereafter cash was withdrawn, it is not the case that the cash withdrawn from those other bank accounts had been received by the appellant. The appellant has also filed additional evidence in the course....
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....e percentage of bogus purchases made by the said company was 52% in A.Y.2008-09, 55% in A.Y.2009-10 and in A.Y.2010-11. (ii) As regards the affidavit of Shri P.C.Kapoor dated 29.3.2014 it has been reiterated that the disclosure of Rs. 36.76 crores in the case of Bharti Shipyard Ltd, which was the purchases made by Mr. Ketan Kamdar from KIL/SCIL was subject to verification of averments made by Mr. Ketan Kamdar and pursuant to submission of all the documents by Mr. Ketan Kamdar, the genuineness of his purchases from KII/SCIL stands well established. It has also been stated that the affidavit was given at the request of Mr.Ketan Kamdar for submission before the ACIT Central Circle 42 in the matter of K.Amishkumar Trading Pvt Ltd's ongoin....
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....ich relate to cases where purchases were supported by bills, entries were made in books of account and payment was made by cheque and courts have held that such purchases could not held as bogus. In this regard, I find that the case of the appellant is on different facts since the actual delivery of goods received, as per the bills/invoice issued by KIL/SCIL to the appellant, was not proved to the extent of Rs. 1.21 crores (Rs. 14.97 (-) Rs. 13.76) in A.Y.2008-09, Rs. 8.71 crores in A.Y.2009-10 and Rs. 10.15 crores in A.Y.2010-11. The appellant has also cited case laws where addition is made on G.P. basis as noted in para 7.2.1. above. It has been found that there is element of price inflation in respect of purchases made from KIL/SCIL by w....
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....g credit of G.P. ratio on such purchases, as per the G.P ratio declared by the appellant, in all the three assessment years involved in this appeal. The appellant has submitted that the G.P. ratio of the appellant company, considering the entire purchases and sales, is 6.46% for A.Y.2008-09, 8.04% for A.Y.2009-10 and 8.65% for AY 2010-11. The A.O. is directed to verify the G.P. ratio for the above said three assessment years and recompute the addition in respect of the total purchases from SCIL/KIL for the above said three assessment years by estimating the addition at the rate of 12.5% less the GP ratio declared by the appellant in the respective three assessment years. The A.O. is directed to allow appropriate relief accordingly, in all t....
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.... Xerox copy of stock book for the Assessment Year 2008-09 to 2010-2011 depicting all the records of all inward and outward movement of the items of stock was also submitted to prove the genuineness of the purchase transaction. Not convinced with the assessee's reply, the Assessing Officer added the entire amount of purchases in assessee's income. Against the said additions, assessee approached to CIT(A). 9. During the appellate proceedings, the ld. CIT(A) had also called a remand report and after considering the remand report, restricted the addition to the extent of 12.5% less the G.P already declared by assessee, after recording a detailed finding which has not been controverted by the ld DR by bringing any positive material on record. ....