2021 (4) TMI 1332

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....n law and fact son records in confirming an addition of 15,61,217 by arbitrarily estimating the additional Gross profit @ 5% of Turnover as against 4.38% already offered to tax by the Appellant. b) The appellant submit that it have been engaged in trading of the Leather articles, transported in hand carts, items of purchases are identifiable against the sales. 2. The Learned Commissioner of Income Tax (Appeals) has erred in law and facts on records in holding the reopening of the assessment as valid based on incorrect fact that no objection was taken by the appellant against the reopening of the assessment, whereas the appellant submit that the assessment was made ex-parte while sending the notice u/s 148 to a person not a....

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.... assessee has taken the bogus purchase entry in sum of Rs.3,12,24,345/- from the following parties.:- S. No TIN Name of Hawala Parties PAN F.Y Amt(Rs. 1 27910671027V Sejal Enterprises ABMF1997F 2010-11 604631 2 27940256772V Nisha enterprises AWGPS3492N 2010-11 1050141 3 27300350341V Shakti Trading Co. AIOPGN8087B 2010-11 1365300 4 27190553859V Impex Trading Co AMEPS9125N 2010-11 113535 5 27860582930V Milestone Corporation AFCPR4544M 2010-11 589500 6 27250554020V Sheetal Trading Co ABPPL5107M 2010-11 1442813 7 27750595164V Deep Enterprises AMTPS9884P 2010-11 3328918 8 27470616755V Somnath In....

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.... 27910742807V Chehar Trading Pvt. Ltd. AADCC8422G 2010-11 589500 28 27980364002V Pratik Trading Co. AVBPS76574 2010-11 1442813 29 27140189603V Ashit Traders AAIPD4282F 2010-11 3328918 30 27890612159V Ascent Enterprises AAEPB3795R 2010-11 321750 31 27060745233V Balaji Impex AMVPK3444R 2010-11 475875 32 27930794551V Pluto Multitrade Pvt. Ltd. AAFCP5947B 2010-11 528750 33 27040801631V Viva Trading Pvt. Ltd. AADCV3609A 2010-11 532543 34 27750742983V Eleven Impex ADWPN1614N 2010-11 581535 4. Thereafter, the notice was given and after the reply of the assessee, the AO raised the addition in sum of Rs.3,12,....

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....n Bank of India lnduslnd bank indicating the payment made to the seller parties. It is noticed that the AO gave no adverse finding with regard to the sales effected by the assessee. Without purchases being made, the sales cannot be made regarding which no doubt is raised. In the circumstances, it appears that the assessee may have purchased the gods in grey market at a lower rate and obtained bills for accommodating the purchases made. It is also seen that the AO has ejected the books of accounts u/s 145(3) of the Act. If the books results are not giving proper results the AO has to estimate the profit at a reasonable percentage, he cannot make addition of all purchases as the income. No business gives all purchases as profits particularly ....