2021 (3) TMI 818

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.... 2. During the course of hearing, the Ld. counsel for the assessee submits that he would not like to press the 1st and 3rd ground of appeal. Considering the submission of the assessee, we dismiss the 1st and 3rd ground of appeal as not pressed. We then turn to the 2nd ground of appeal which reads as under : "2. Addition on account of alleged non-genuine purchases The CIT(A) erred in upholding the action of the Assessing Officer in making an addition of a sum of Rs. 1,06,900/-, being 8 percent of alleged non-genuine purchases of Rs. 13,26,130/-. The Appellant contends that on the facts and in the circumstances of the case and in law, the CIT(A) ought not to have upheld the impugned addition inasmuch as there are no....

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.... that vide order dated 03.05.2019, the Ld. CIT(A) confirmed the above disallowance made by the AO by observing that : "6.3.32 As narrated earlier, the AO in this case has held that the parties from which purchases were made by the appellant were found to be bogus and that is the reason for which it was not produced during the assessment proceedings. Not having doubted the consumption/sales, the motive behind obtaining bogus bills thus, appears to be inflation of purchases price so as to suppress true profits. Considering the facts of the case as well as the various case laws cited (supra), I estimate that the addition made by the AO is correct. This estimation is in addition to the GP shown by the appellant. Thus, addition of Rs. 1....

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....the case of entities from whom the assessee had claimed to have made purchases, the Department collected information suggesting that such purchases were not genuine. The AO noticed that the assessee had shown purchases of fabrics worth Rs. 29.41 lakhs from three group concerns, namely M/s Manoj Mills, M/s Astha Silk Industries and M/s Shri Ram Sales and Synthetics. On the basis of statement recorded during such survey operations, the AO concluded that the selling parties were engaged only in supplying the bogus bills, that the goods in question were never supplied to the assessee, and therefore, the purchases were bogus. He, therefore, added the entire sum in the hands of the assessee as its additional income. The assessee carried the matte....

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.... Appeal No. 240 of 2003 and connected appeals decided on 20.06.2016 and also pointed out that the SLP against such decision was dismissed by the Hon'ble Supreme Court. The Hon'ble Bombay High Court held : "8. In the present case, as noted above, the assessee was a trader of fabrics. The A.O. found three entities who were indulging in bogus billing activities. A.O. found that the purchases made by the assessee from these entities were bogus. This being a finding of fact, we have proceeded on such basis. Despite this, the question arises whether the Revenue is correct in contending that the entire purchase amount should be added by way of assessee's additional income or the assessee is correct in contending that such logic cannot....