2016 (11) TMI 1683

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....leads that the CIT(A) has erred in restricting bogus purchases addition of Rs. 3,02,53,360/- to Rs. 37,81,670/- as made by the Assessing Officer in assessment order dated 24.03.2006. Its main argument is that the same has violated this tribunal's remand directions in ITA No.2089/Ahd/2007 decided on 19.07.2007 in first round of proceedings. 3. We come to the relevant facts now. The Assessing Officer treated the above entire sum of Rs. 3,02,53,360/- incurred on grey cloth purchases mainly on the ground that although assessee had claimed that the said purchases were executed through agents only, they were never produced in the course of assessment proceedings. Its payees parties were not found on the given addresses. All notices issued u/s.....

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....e the genuineness of purchases. The copies of affidavits filed by appellant are also identical in each and every case with same wordings except the amounts and names of seller parties. Only Para 4 of the affidavits is relevant and in that para also it is not clearly mentioned that who has sold the goods to whom and the payments were made from/ to whom. At the cost of repetition, para 4 of the affidavits in one case is reproduced as under. (i) During the financial year 2002-03, we have received various orders from M/s. Suday Exports Ltd., 9, Supreme Chambers, Mulchand Market, Ring Road, Surat for supply of grey art silk cloth and accordingly we had arranged and supplied goods worth Rs. 24,44,550/- to M/s. Reshma Textiles, Natraj Ind....

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....case of Vijay Proteins (supra), Hon'ble ITAT has decided the issue in many other cases also but the percentage has been restricted to 12.5%. Some of the cases are as under. i. M/s. pholanath Poly Fab P. Ltd. -vs- ITO in ITA No. 137/Ahd/2009 ii. M/s. Raj Exports -vs- ACIT in ITA No. 1827/Ahd/2005 iii. M/s. Sanket Steel Traders -vs- ITO in ITA No. 2801/Ahd/2008 iv. Smt, Sajjandevi B. Jain -vs- ITO, OSD-1 in ITA No. 609/Ahd/2009 Thus, in the case of appellant also, I hereby apply the ratio given by Hon'ble ITAT in the decisions of aforesaid cases and restrict the addition to 12.5% of the bogus purchases made by appellant. Thus, 12.5% of Rs. 3,02,53,360/-which comes to Rs. 37,81,670/- is adde....