2022 (6) TMI 967

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....Income Tax Act, 1961 (the Act) concerning AY 2015-16. 2. The grounds of appeal raised by the assessee reads as under: 1. That the Ld. CIT(A) has erred in confirming the disallowances of Rs.88,670/- made u/s 14A of the Act, ignoring the principles laid down by Hon'ble Supreme Court in case of PCIT vs. Sintex Industries [2018] 93 taxmann.com 24 (SC). 2. That the Ld. CIT(A) has erred in confirming the purchases as bogus, to the tune of Rs.6,50,160/-calculated at Average G.P. Rate @ 16.26% of Rs.39,98,522/-, inspite of the following facts & submission made before her. (a) That payments to the suppliers have been made through RTGS, banking channels; (b) That the assessee has paid Entry Tax of these purchase....

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....trolled by Shri Ram Prakash Bhatia to be bogus. On the basis of information received from Investigation Wing in the course of survey carried out at the premises of Shri Ram Prakash Bhatia and on the basis of statement recorded of Shri Ram Prakash Bhatia, the genuineness of purchases made by Assessee from M/s. Rishabh Foods amounting to Rs.39,98,522/- were doubted and aspersions were cast at the genuineness of purchases (cotton) claimed to have been made by the assessee from the aforesaid party. The Assessing Officer accordingly made an addition of Rs.7,99,704/- estimating profit embedded in such bogus purchase at 20%. 6. Aggrieved, the assessee preferred appeal before the CIT(A). The CIT(A) has endorsed the action of the Assessing Office....

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....Centre at Punjab Border when the goods entered into Punjab State, copies of excisable stock register form IV and RG-1 wherein the purchase quantity has been entered and finished goods produced out of it and sold to its customers; VAT returns showing the said purchases together with bank statement showing payment made through banking channels. The assessee also contends that the quantity details have not been disturbed by the Assessing Officer nor the books of account have been rejected and / or any discrepancy was shown therein. The assessee thus contends that in the backdrop of these elaborate documentation, the purchases made by the assessee running large scale business and showing huge profits could not have been discarded summarily on t....