TaxTMI 
TaxTMI 
2020 (8) TMI 267
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.... the case and in law, the Ld. CIT (A) has erred in directing the Assessing Officer to disallow 8% of the bogus purchases rather than the whole of such purchases amounting to Rs. 12,10,033/-". 2. "On the facts and in the circumstances of the case and in law, ld.CIT(A) has erred in directing the Assessing Officer to disallow 8% of the bogus purchases rather than the whole of such purchases without appreciating that such allowance of 92% of expenditure imply allowance of purchases made in cash from the 'grey' market, thereby rendering the provisions of section 40(A)(3) of the Income Tax Act, 1961 totally redundant which could not have been the intention of the statute," 3. "On the facts and in the circumstances of the....
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.... that the assessee is engaged in the business of interior decorators and real estate developers, filed its return of income for AY 2010-11 on 14/11/2010, declaring total income at Rs. 2,95,68,020/-. The assessment has been completed u/s 143(3) of the Act, on 15/03/2013 and accepted returned income. The case has been, subsequently reopened u/s 147 of the Act, on the basis of information received from DGIT, investigation, Mumbai, as per which, Sales Tax Authorities of Government of Maharashtra 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 purch....
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....alleged bogus purchases on the ground that the assessee is one of the beneficiary of accommodation entries of bogus purchase bills issued by Hawala dealers. According to the Ld. AO, although assesee has filed certain basic evidences, but failed to file further evidence in the backdrop of clear finding by the Sales Tax Department, Maharashtra that those parties are involved in providing accommodation entries without actual delivery of goods. The Ld. AO had also taken support from the investigation 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 na....
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....ala dealers, various High Courts and Tribunals had considered an identical issue in light of investigation carried out by the Sales Tax Department and held that in case of purchases claims to have made from alleged hawala dealers, only profit element embedded in those purchases needs to be taxed, but not total purchase from those parties. The Hon'ble Gujarat High Court, in the case of CIT vs Simith P.Sheth 356 ITR 451 had considered a similar issue and held that at the time of estimation of profit from alleged bogus purchases no uniform yardsticks could be adopted, but it depends upon facts of each case. The ITAT, Mumbai, in number of cases had considered an identical issue and depending upon facts of each case, directed the Ld.AO to estima....