TaxTMI 
TaxTMI 
2020 (4) TMI 581
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....tical, therefore, for the sake of convenience, these appeals are clubbed, heard and disposed of by this consolidated order. 3. The brief facts of the case are, assessee is an individual and engaged in the business of scrap material and iron & steel. Assessee filed its return of income on 19.09.11 declaring total income of Rs. 16,17,750/-. Subsequently, AO received information from Sales Tax Department about large number of entities who have provided bogus purchase bills to a large number of tax payers. Based on the information, assessment was reopened u/s 147 of the Act by issuing notice u/s 148 of the Act. AO has received information from Sales Tax Department that assessee has received bogus purchase bills from Sidhivinayak and Surat Tu....
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....t 2007-08 3,75,12,382 4.66 17,47,933 1.09 4,09,380 2008-09 7,55,36,012 3.19 24,05,876 1.07 8,11,220 2009-10 9,03,66,362 3.37 30,49,168 0.95 8,54,628 2010-11 8,05,85,931 5.24 42,21,737 1.29 10,38,165 2011-12 20,68,31,682 3.07 63,55,840 0.84 17,32,126 2012-13 11,88,19,441 3.65 43,34,151 1.22 14,44,247 2013-14 11,36,78,654 4.56 51,80,077 1.31 14,89,133 10.11 From the above chart, it is noticed that the gross profit rate has gone down from 4.66% in AYr 2007-08(non-hawala purchase year) to 3.07%, in AYr 2011-12 (hawala purchases year), the year in which the alleged hawala purchases, were booked, for which the ap....
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....es against purchases from regular parties 7,50,35,784 42,99,403 5.73 Total sales 8,05,85,931 42,21,737 5.24 A.Y.11-12 Particulars Total sales affected Gr. Profit GP Ratio (%) Sales against purchases from hawala parties 1,24,89,960 1,27,999 1.025 Sales against purchases from regular parties 19,43,41,722 62,27,841 3.20 Total sales 20,68,31,682 63,55,840 3.07 10.13 From the above chart it is seen that the appellant had declared the GP @ (-) 1.39% & 1.02%, in respect of goods traded from alleged hawala parties, as against GP rate of 5.73% and 3.20%, in respect of goods traded from regular parties, in AYr 10-11 and 11-12, respectively. In compliance, the Ld AR....
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....liable to be adopted / estimated in the hawala years as well, in the light of decision of the Hon'ble S.C. in the case of M/s Kanchwala Gem 288ITR10. In view of these facts, the Ld. AR, vide letter dated 24.06.2016 has requested to restrict the disallowance at the most to the extent the GP fall. The contention of the Ld. AR appears to be logical and liable to be accepted. Accordingly the year wise appeals of the appellant are decided here, as under :- A Yr 2010-11 By booking alleged bogus purchases, as compared to the A.Y. 10-11, the appellant has suppressed its profit by Rs. 4,16,7157- (8,05,85,931 x 5.73% less GP declared Rs. 42,21,737). In compliance, the Ld. AR could not offer any valid reasons for fall in the GP r....
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....both assessee and revenue are in appeal before us with the following grounds:- 1. On the facts and in the circumstances of the case, the Ld. CU(A) has erred in relying on the decision of Supreme Court in the case of Kanchwala Gems Vs. JCIT 288 ITR 10(SC) and Hon'ble High Court's decision in the case of Vijay Protein, Sanjay Oil Cake Industries, etc.. 2. On the facts and in the circumstances of the case, and in law, the Hon'ble CIT(A) erred in not following the order of ITAT, Pune in UA No. 1411-1415 dated 20.02.2015 in the case of M/s. Kolte Patil Developers Ltd. wherein 100% addition of bogus purchases was confirmed. 3. On the facts and in the circumstances of the case, the Ld. CIT(A) has erred in giv....
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....ny document in support of the above said purchases and it clearly indicates that these purchases are not genuine and it is only accommodation entries provided to the assessee and he supported the findings of AO and prayed that 100% purchases be disallowed and restore the order to AO. 9. Considered the rival submission and material placed on record, we notice from the records that assessee is engaged in the business of scrap dealer in iron and steel market and assessee purchased the scrap materials from the various manufacturers or dealers. From the record, we notice that the AO has not disallowed the sales, but disputed only the purchases. Therefore, we cannot disallow 100% of the purchases and we have seen that various courts held that ....