2020 (6) TMI 718

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.... Mumbai (in short ITO/ AO) for AYs 2010-11 & 2011-12 vide even date 26.03.2015 & 23.03.2015, under section 143(3) r.w.s 147 of the Income-tax Act, 1961 (hereinafter 'the Act'). 2. The only common issue in these three appeals of assessee is as regards to the order of CIT(A) confirming the disallowance of purchases from alleged suspicious dealers by estimating the profit rate of 12.5% on the bogus purchases. For this, the assessee has raised the identical worded grounds in all the years except quantum and the facts and circumstances of the case are also identical. Hence, I will take the facts from Assessment Year 2010-11 in ITA No. 1854/Mum/2019. The relevant ground in Assessment Year 2010-11 read as under: - "1. On the facts and ....

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....icer during the course of assessment proceedings received information from sale tax department Govt. of Maharashtra that the assessee has made purchases from the following parties who indulge in issuing bogus bills without supply of any goods or materials for commission. The following are the parties and the total amount amounting to Rs. 64,79,583/-:- Sl NO. Name of the purchase party Amount of purchase 1. Liberty Trading Company 7,50,249 2. Global Trade Impex 12,43,643 3. Atlas International (I) 9,02,272 4. Seemant Trading Co. 10,40,336 5. Premier Enterprise 12,33,187 6. Nirmal Metal Enterprise 7,99,404 7. Aarco Enterprises 5,10,492   Total 64,79,583 4....

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....above, it is an admitted fact that Sales Tax Department has conducted search and seizure operation and has established large number of companies/ firms/partnership concerns as hawala dealers who are engaged in accommodation entries without actually supplying the goods. The appellant is one of the beneficiary and has received such accommodation bills from one of the hawala operators totaling to Rs. 33,82,929/-. The A.O. attempted to verify such parties by making independent enquiries u/s. 133(6) of the I.T. Act, 1961. However, no reply was received from them. The appellant filed certain details such as purchase bills, ledger account, bank statement etc. However, some of the specific details required to establish the genuineness of purchase s....

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....wed." Aggrieved, now assessee is in appeal before Tribunal. 5. I have gone through the facts and circumstances of the case. I noted that assessee has filed detailed evidences such as purchase bills, books of account, bank statement proving that the purchases are made through account payee cheques but the assessee could not produce genuiness of purchase as he was not having any evidence like transportation of goods, entry of goods in the stock register as one to one consumption pattern of alleged purchases item wise and confirmation from the parties/ concerns etc. I noted that in view of the above, the CIT(A) has rightly estimated the profit rate of alleged bogus purchase. But, I am of the view that the profit rate can be estimated on ....