2017 (8) TMI 1599

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....f the Income Tax Act, 1961 (hereinafter 'the Act'). 2. The first common issue in these two appeals of assessee is against the order of CIT(A) confirming the reopening of assessment. For this assessee has raised identical grounds in both the years. Hence, we will take the facts from AY 2009-10 and grounds of appeal also and decide the issue. The grounds raised regarding re-opening reads as under: - "A) BINDING PRECEDENT I. 'The learned CIT(A) has erred in law & in facts in not following binding precedents in the case of CIT v. Nikunj Eiximp Enterprises (P) Ltd. (2013) 216 Taxman 171 (Mag.) & Babulal C. Borana (282 ITR 251 (Born) (HC) & Bombay tribunal judgments quoted in written submission before CIT(A)." 3. We ha....

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.... Mani Bhandra Sales Pvt. Ltd 10,73,072 5. Shreeji Traders 1,11,04,952   Total 4,14,03,447 For AY 10-11 "Sl No. Name of party Amount 1. Bhavikh Steels Pvt. Ltd 24,55,621   Umiya Sales Agency Pvt. Ltd 12,38,016/-   Bhagwati Trading Co. 26,03,692/-   Shreeji Traders 36,89,674/-   Mumbai Metal Corporation 24,21,093/- Total 1,24,08,096/- 6. The AO issued noticed under section 133(6) to the parties which returned back with the remark as "left" and assessee failed to produce these parties. During the course of assessment proceedings and during appellate proceedings, the assessee submitted all the documentary evidences such as inward r....

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....e assessee was asked to produce the parties for verification which was not complied with. The assesse could not produce any evidence in support of the delivery and transport of the materials from the 'alleged purchase parties. In such a situation, it is logical to conclude that the assessee has taken bogus bills and the inflation of purchase and the extent of inflation has to be estimated based on facts of this case. 5.9 In view of above it is held that the appellant has failed to establish that the goods were purchased from the parties which had issued the bills. Natural inference is that either it was purchased from different source or the same were out of suppressed stock of past period because sales are not in dispute. Sinc....