2020 (4) TMI 541

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....appeals are identical, therefore, for the sake of convenience, these appeals are clubbed, heard and disposed of by this consolidated order. Firstly, we are taking ITA No. 6641/Mum/2018 for AY 2010-11 filed by the assessee. 3. The brief facts of the case are, assessee filed its return of income on 27.09.2010 declaring total income at Rs. 10,63,59,470/-. The return was processed u/s 143(1) of the Act. Subsequently, the assessment was reopened by issued of notice u/s 148 of the Act with the reasons recorded for reopening that as per the information gathered /available in the office revealed that assessee has obtained bogus bills of Rs. 4,74,343/- from entities listed in Sales Tax website and declared as hawala dealers by the Sales Tax Depar....

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....cted purchase from certain parties declared to be hawala dealers unaccompanied by any statement or report cannot be a tangible material, per se, for recording of the belief. 3. The Ld. CIT(A) erred in confirming the addition of Rs. 4,74,343 being purchases effected by the appellant for packing material without considering the fact that all the purchases were supported by bills issued by the suppliers, payments being made by account payee cheques and purchases of packing material being reasonable having regard to consumption in earlier years. 4. The Ld. CIT(A) further erred in confirming the addition without appreciating the fact that no statement recorded or any investigation carried out either by sales tax department or D....

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....expenditure to the extent of 4.36% to sales in AY 2008-09, 5.46% in AY 2009-10 and this year 3.3%. Whereas only this year, AO has disallowed the packaging material to the extent of Rs. 4.74 lakhs which will reduce the percentage of packaging material to 1.48%. He further submitted that the assessee has declared profit to the extent of 10.41 crores and 5.97 crores in the subsequent assessment years, which clearly shows that assessee has no reason to reduce the taxable profit to the extent of purchases disallowed by the AO. He further submitted that it has no relevance or effect of the taxable income declared by the assessee and no need to suppress any tax. He further submitted that assessee has not pressing ground no. 1 of reopening of asses....