2019 (6) TMI 1666

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....MAR, ACCOUNTANT MEMBER Assessee by : Shri Ishwar Prakash Rathi, A.R. Revenue by : Shri Arvind Kumar, D.R. O R D E R Per Rajesh Kumar, Accountant Member: The above titled four appeals have been preferred by the assessee against the order dated 09.08.2016 of the Commissioner of Income Tax (Appeals) [hereinafter referred to as the CIT(A)] relevant to assessment years 2010-11 & 2011-12.....

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....Act. Thereafter, the case of the assessee was reopened u/s 147 r.w.s. 148 of the Act after AO received an information from Sales Tax Department, Government of Maharashtra and DGIT, (Investigation) that assessee is a beneficiary of bogus hawala purchase bills to the tune of Rs. 1,11,71,532/- from 10 hawala parties as detailed in para 2 of the assessment order. The AO issued notice under section 148....

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....es as unexplained expenditure under section 69C of the Act by framing assessment under section 143(3) read with section 147 vide order dated 18.03.2015. 6. In the appellate proceedings, the Ld. CIT(A) partly allowed the appeal of the assessee by sustaining the addition to the extent of 12.5% of the bogus purchases thereby confirming the addition to the extent of Rs. 13,96,441/- by following the....

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....es could not be added to the income of the assessee and that only profit element in the said purchases have to be brought to tax however we are not in agreement with the rate applied on the alleged purchases. In this case, we observe that the assessee has already accounted for these purchases in the books of accounts and have returned the profits on these purchases. Under these circumstances, i....