2020 (12) TMI 610

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.... by : Shri Gurbinder Singh ORDER Per Shamim Yahya, A. M. These are four appeals by the assessee, wherein the assessee is aggrieved that the learned CIT-A has erred in sustaining 12.5% disallowance on account of bogus purchases pertaining to respective assessment years. 2. One cross appeal is also there by the revenue challenging that the ld. CIT(A) has erred in sustaining 12.5 % instea....

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.... 7139/Mum/2018 2009-10 1,85,30,375 7140/Mum/2018 2010-11 7,78,64,806 7141/Mum/2018 2011-12 98,66,483 2171/Mum/2019 2011-12 99,97,897 5. The A.O. inter alia relied upon the Sales Tax Department information. He rejected the assessee's claim that all the documentary evidence for purchase has been submitted by observing that lorry transportation receipt has not been....

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....eral case laws, the ld.CIT(A) restricted the disallowance to 12.5% of the bogus purchases. 8. Against the above order, the assessee is in appeal before the ITAT. For assessment year 11-12, the revenue has also filed one cross appeal. 9. We have heard the learned departmental representative and perused the records. Upon careful consideration we find that the assessee has provided the document....

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....e purchase from the grey market. Making purchases through the grey market gives the assessee savings on account of non-payment of tax and others at the expense of the exchequer. As regards the quantification of the profit element embedded in making of such bogus/unsubstantiated purchases by the assessee, we find that as held by Hon'ble Bombay High Court in its recent judgement in the case of P....