TaxTMI 
TaxTMI 
2018 (2) TMI 1955
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....n facts and law in disallowing and reducing a sum of Rs. 52,02,655/- from the closing WIP in respect of certain purchases alleged as bogus by the Id. Assessing Officer without appreciating the evidences placed on record. 2. The learned Commissioner of Income Tax (Appeals)and Assessing Officer erred in facts and law in not appreciating that the appellant had duly discharged its onus of establishing the genuineness of purchases and utilisation thereof in the business of the appellant and accordingly no disallowance was warranted. 3. The learned Commissioner of Income Tax (Appeals) and Assessing Officer erred in facts and law in relying upon the statement of certain persons without appreciating the defects pointed ou....
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....; "On the facts and circumstances of the case and in law, the Ld. CIT(A) has failed to conform to the ratio laid down by the Hon'ble Apex court in the case of N.K. Proteins Ltd. vs. DCIT in SLP (Civil) No.769/2017 dated 16.01.2017." 6. "On the facts and circumstances of the case and in law, the Ld. CIT(A) has erred in not appreciating that purchases were made from some other parties which were not recorded in the books of accounts and only accommodation bills were obtained from hawala parties and there by attracting provisions of section 10A(3}." 7. "On the facts and circumstances of the case and in law, the Ld. CIT(A) has erred in not appreciating the fact that applicability of provisions of 40A(3) attract....
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....CIT(A) observed that if entire purchases are disallowed, it would imply that 35% of the WIP is bogus, which does not seem to be logical. The average cost of construction declared at Rs. 2812.07/- per sq.ft. of the assessee approximates the average rate of it sister concern - Triveni Properties accepted at Rs. 2907/-per sq.ft., where there is no allegation of bogus purchases. Also, the project of both these concerns are in the same vicinity i.e. Kamothe, Navi Mumbai. Accordingly, the Id. CIT(A) has disallowed 6.5% on purchases where the VAT rate is 4% and 15% of purchases where the VAT rate is 12.5% based on the rationale laid down by the ITAT in the case of Simit P Sheth (supra) and approved by the Hon'ble Gujarat High Court. The sai....
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.... no adverse finding is brought on record in relation to these evidences. Further, the architect's certificate along with quantitative details established the consumption of materials for the purpose of construction of the building. 13. It was argument of learned AR that the non-service of notice u/s. 133(6) could not be viewed adversely against the assessee in view of the decision in the case of CIT v. Orrisa Corporation P. Ltd. (1986) 159 ITR 78 (SC) and CIT v. Nikunj Eximp Enterprises (P.) Ltd. [2015] 372 ITR 619 (Bom.). The Assessing Officer had not provided the opportunity of cross examining - Slid. Chandrakant Dheiai, on whose statement reliance was placed. Further, the said party was a MVAT defaulter and accordingly to avoid th....