2021 (4) TMI 662

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.... in law, the Ld. CIT(A) erred in restricting the addition of Rs. 5,21,52,147/- to 52,15,215/- as estimate on profit on the bogus purchase. 2. On the facts and in the circumstances of the case and in law, the Ld. CIT(A) has erred in not appreciating the f act that the Managing Director has admitted to the fact that the assessee is involved in taking accommodation entries for bogus purchases. 3. On the facts and in the circumstances of the case and in law, the Hon'ble Ld. CIT(A) has erred in deleting the disallowance made by the AO overlooking the explicit finding of the investigation carried out by the Sales Tax Department and corroborated by the enquiries of the AO. 4. The appellant craves leave to amend or alter ....

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....e information submitted by the parties were not complete with respect to the genuineness of purchase transactions. Considering the overall material facts and information filed and the statement recorded, the A.O found that the onus lies on the assessee to prove the genuineness of purchases. Finally, the A.O considered the facts of bogus purchases bills and is of the view that the parties referred in the website of Maharashtra Sales Tax Department are hawala operators, therefore made an addition along with other additions and assessed the total income of Rs. 9,18,80,807/- and passed the order u/s 143(3) r.w.s 147 dated 26.11.2016. 3. Aggrieved by the order, the assessee has filed an appeal with the CIT(A). The Ld. CIT(A) considered the su....

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....and gone through the facts and circumstances of the case. Before us, the leaned Counsel for the assessee filed a comparative statement of cross profit and net profit ratio for many years which is as under: - Comparative statement of gross profit and net profit ratios Income Turnover 2008 2007 2006 2005 2004 Sales 81,470,952 103,613,890 44,470,801 64,956,690 65,574,370 Income/ Decreases in Stock 39,201,816 1,667,781 25,923,445 13,613,129 72,276,896 Gross Profit Turnover. Bogus purchases allowed As expenses 52.20% 48.48% 51.94% 35.52% 40.98% Net Profit/Turnover Bogus purchases allowed expenses 5.36% 5.83% 4.27% 3.90% 9.85% The learned C....