2019 (4) TMI 1858

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.... appals, which are common but for amounts involved, are as follows :- "1. The Ld. CIT(A) has erred in law and on facts in deleting the addition of Rs. 79,05,758/- made on account of purchases made treating it as bogus and non-genuine, without properly appreciating the facts of the case and the material brought on record. 2. On the facts and in the circumstances of the case, the ld. CIT(A) ought to have upheld the order of the Assessing Officer. 3. It is, therefore, prayed that the order of the ld. CIT(A) may be set aside and that of the Assessing Officer may be restored to the above extent." 3. When the appeals were called out for hearing, learned representatives fairly agreed that the issue in appeal are now c....

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....Enterprise 6,76,915/- 5 Riddhi Siddhi Trading 5,70,960/-   Total 37,68,078/- It is noted that the information received in respect of the above parties from the Sales Tax Dept were specific. The entire method of issuing bogus bills was accepted by various owners of the above mentioned parties and the assessing officer has relied on the information received while making the addition. The appellant has not produced any credible evidence except relying on the fact that the payment has been made by cheque and the material has been received. In view of the specific acceptance by the above parties that they were involved in issue of bogus bills, the action of the AO by treating the purchases from above parties as....

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....w material purchases. It has been observed on examination of the records and the details furnished by the appellant that the appellant is issuing separate bills for material consumed against the construction at different sites and labour bills in respect of those work are issued separately. Therefore, it is possible to reconcile the amount of material consumed at each site. The appellant has accordingly given a reconciliation of the material purchased and consumed. Considering the fact that the appellant has been able to reconcile the quantity of purchases with the consumption, and the bills issued, it is clear that the appellant has purchased raw material from one person and obtained the bill from somebody else. In these circumstances, it ....

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....hases] - Assessment year 2006-07 - Assessee was engaged in business of trading in steel on wholesale basis - Assessing Officer having found that some of alleged suppliers of steel to assessee had not supplied steel to assessee but had only provided sale bills, held that purchases made from said parties were bogus - He, accordingly, added entire amount of purchases to gross profit of assessee - Commissioner (Appeals) having found that assessee had indeed made purchases, though not from named parties but other parties from grey market, sustained addition to extent of 30 per cent of purchase cost as probable profit of assessee - Tribunal however, sustained addition to extent of 12.5 percent - Whether since purchases were not bogus but were mad....