2021 (6) TMI 314

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....ssment order passed under section 143(3) r.w.s. 147 of the Income Tax Act, 1961 (for short 'the Act'). 2. Brief facts of the case are that the assessee filed its return of income for the AY under consideration declaring total income of Rs. 52,06,690/- which was processed u/s 143(1) of the Act. Subsequently, on the basis of information received from the Investigation Wing of the department that during the year relevant to the assessment year under consideration the assessee had obtained accommodation purchase bills amounting to Rs. 25,12,243/- from six bogus parties without purchasing any material, the case was reopened and the assessment was completed 143(3) r.w.s. 147of the Act of the Act and determined the total income of the assessee ....

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.... in law, the Ld. CIT(A) erred in restricting the addition on account of bogus purchases to only 12.5% of the bogus purchases, without appreciating the ratio of the decision of the Hon'ble Gujarat High Court in the case of N K Protiens Ltd., wherein it has been held that in the event of bogus purchases, the addition of whole of such purchases is required to be made and this decision has been confirmed by the Hon'ble Supreme Court in SLP No.CC No.769 of 2017 by dismissing the SLP of that assessee. 4. "The appellant prays that the order of the Ld. CIT(A) on the above directions be set-aside and that of the assessing officer be restored. 5. "The appellant craves leave to amend or alter any of the aforesaid grounds or add a new....

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.... verify the genuineness of the purchase transactions. The assessee instead submitted the ledger accounts of the above parties and bank Statements extracts evidencing the payments through bank cheque. In this case, the onus lies on the assessee to prove the genuineness of the purchases and the assessee had to prove that the suppliers were genuinely existing. The assessee has not made any efforts to discharge the onus and failed to produce any of the parties, in spite of the opportunities given by the Ld.AO. The assessee could not satisfactorily substantiate and establish the fact that there were genuine purchases from these parties. There was a report from SIT(inv) stating that all the seller parties as per the list supplied by them....