2021 (9) TMI 177

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....i ORDER Per Vikas Awasthy , JM These cross appeals by the assessee and the Revenue are directed against the order of Commissioner of Income Tax (Appeals)-26 Mumbai [hereinafter referred to as 'the CIT(A)'] dated 12.06.2019 for the Assessment Year (AY) 2009-10. 2. Ms. Hiral Sejpal appearing on behalf of the assessee submitted that assessee is engaged in manufacturing and trading....

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....e CIT(A). Before the First Appellate authority, the assessee furnished VAT Audit Report. As per the said report, the assessee had made purchases from alleged hawala dealers only to the extent of Rs. 76,78,960/-. The CIT(A) modified the assessment order only to the extent of total alleged hawala purchases as per VAT Audit Report and retained ad hoc GP addition @ 12.5%. The ld. Authorized Representa....

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....esenting the Department vehemently defending the assessment order submitted that the VAT Audit Report on the basis of which the CIT(A) has reduced the amount of bogus purchases from Rs. 1,52,31,031/- to 76,78,960/- was never brought to the notice of AO. The CIT(A) has failed to appreciate the fact that parties from whom assessee has made unapproved purchases are declared hawala operators. The ld. ....

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....rchases @ 12.5%. The AO computed total amount of bogus purchases from hawala operators at Rs. 1,52,41,031/-. In First Appellate proceedings, the CIT(A) upheld the findings of AO to the extent of assessee's involvement in obtaining bogus bills and the rate of GP estimated on such bogus purchases. However, on the basis of VAT Audit Report, the CIT(A) reduced quantum of bogus purchases to Rs. 76,....