2021 (8) TMI 556

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....order. 2. The assessee in appeals has assailed the addition of Rs. 30,80,585/- in assessment year 2010-11 and Rs. 31,75,554/- in assessment year 2011-12 on account of alleged bogus purchases. 3. The brief facts of the case as emanating from records are: The assessee is a dealer and stockist of tools and alloy. The assessment in the case of assessee for assessment years 2010-11 and 2011-12 were reopened on the basis of information received from the Sales Tax Department, Government of Maharashtra. As per information received the assessee had obtained bogus purchase bills amounting to Rs. 2,46,44,676/- from various hawala dealers in assessment year 2010-11 and bogus purchase bills aggregating to Rs. 2,53,04,428/- from dealers declared as....

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....argin of profit with no significant change in market condition hence estimation if at all to be adopted it should be based on last 3 years average G P margin as submitted herewith. e. Merely relying on statement of creditors before VAT authority without knowing their objective of skin saving exercise & not making independent inquiry viz. Bank statements, PAN, IT records etc leads to incorrect assessment of income. f. Maintenance of stock movement records too a conclusive evidence of my firm doing real business hence any addition based on estimation is uncalled for & needs to be deleted. g. My audited books of accounts & especially cl 17 (h) of Audit report which doesn't qualify any cash payment above permissib....