2020 (4) TMI 620

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....The Revenue has raised more or less common grounds of appeal for both asst. Years. Therefore, for the sake of brevity, grounds of appeal filed in ITA 804/Mum/2019 for A.Y 2009-10 are reproduced as under: 1. On the facts and in the circumstances of the case and in law, the Ld. CIT(A) erred in restricting the addition at 12.5% as against 18% made by the AO, pertaining to Hawala Purchases, notwithstanding that there is a specific finding of Sales Tax Department that the parities from whom purchases were allegedly made had issued false bills without delivery of goods, and none of these parties were available at their address when verification letter u/s 133(6) of the Act were issued. 2. On the facts and circumstance of the cas....

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....ct, on the basis of information received from DGIT, investigation, Mumbai, as per which, Sales Tax Authorities of Government of Maharastra had taken actions against number of Hawala dealers, who had issued bogus purchase bills to various parties in Mumbai and other places. As per list of beneficiaries, the assessee is one of the beneficiary, who had taken accommodation bills of bogus purchases from various parties as listed by the AO in his assessment order amounting to Rs. 11,51,619/-. The case was selected for scrutiny and the assessment has been completed u/s. 143(3) r.w.s. 147 of the Act, 1961 on 10/03/2016 and determined total income of Rs. 12,41,420,/-, after making 18% profit additions towards alleged bogus purchases from those parti....

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....nvestigation conducted during the course of assessment proceedings, as per which notice issued u/s 133(6) to the parties were returned un-served by the postal authorities. Therefore, he came to the conclusion that purchases from the said parties are bogus in nature. It is the contentions of the assessee before the lower authorities that purchases from the above party are supported by necessary evidences. It has furnished all possible evidences, including books of accounts; stock details and bank statement to prove that payment against said purchase have been made through proper banking channels. 6. Having considered arguments of the Ld. DR and also, material available on record, we find that both the side have failed to prove the case in....