2020 (10) TMI 553

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...., AR For the Responden : Shri V. Vinod Kumar, DR ORDER PER SHRI SHAMIM YAHYA- AM: This is an appeal by the assessee where the assessee is aggrieved that the Ld. CIT(A) has erred to sustain part disallowance on account of bogus purchases, vide order dated 21.08.2019, pertaining to A.Y 2009- 10. Being 12.5% of Rs. 82,63,142/- and 100% of Rs. 4,64,990/-. Another issue raised is that Ld....

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....rchases and 100% for purchases from M/s. Manav Impex of Rs. 4,64,990/-, wherein, AO has noted that the said party has responded denying any transaction the assessee. Furthermore, AO has also made addition of Rs. 4,76,739/- on account of contract received reported in 26AS statement which was not reflected in the assessee's recounts. Assessee in this regard has submitted before the Ld. CIT(A) that a....

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....ase of Nikunj Eximp Enterprises (in writ petition No. 2860, order dated 19.06.2014). In this case the Hon'ble High Court has upheld 100% allowance for the purchases said to be bogus when sales are not doubted. However, in that case all the suppliers were to be Government Agency. 3.1 In the present case, the facts of the case indicate that assessee has made purchase from the grey market. Making ....

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....it already disclosed from the standard 12.5% disallowance being done. Furthermore, Hon'ble Jurisdictional High Court in the case of Adam H Kazi has held that the disallowance regarding bogus purchases should be restricted to the difference between gross profit on normal purchases and purchases through bogus routes. Furthermore, we also note that several decisions that ITAT has considerably lowered....