TaxTMI 
TaxTMI 
2023 (2) TMI 908
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.... 2. These appeals were listed for hearing before us pursuant to the order dated 03/01/2023, passed by the Co-ordinate Bench of the Tribunal in M.A. no.297 & 298/Mum./2019, whereby the earlier common ex-parte order dated 18/01/2021, was recalled and the appeals were directed to be fixed for hearing afresh. 3. Since the present appeals pertained to the same assessee involving similar facts and issues, therefore, as a matter of convenience, these appeals were heard together and are being disposed off by way of this consolidated order. With the consent of the parties, the appeal for the assessment year 2009-10 is taken up as a lead case and the decision rendered therein shall apply mutatis mutandis to the appeal for the assessment year 2010-1....
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....derstand that if no purchases are made how sale could be effected & the learned CIT(A) erred in not passing any speaking order of this point also. 5. The learned ITO erred in making the addition on suspicion & learned CIT(A) erred in confirming the addition. They failed to understand that suspicions however strong cannot form basis of our assessment as there are no evidence to conclude that transactions are bogus. 6. The learned ITO erred in levying interest u/s 234B & 234C of as well as & learned CIT (A). 7. Your appellant crave leave to add, alter and /or amend any ground of appeal on or before hearing." 5. The brief facts, as emanating from the record are: The assessee is a partnership firm engaged in trading in computers and its ....
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....the profit element @ 12.5% of the total non-genuine purchases and added the same to the total income of the assessee. 6. The learned CIT(A), vide impugned order, dismissed the appeals filed by the assessee both with respect to the issue of jurisdiction invoked under section 147 of the Act as well as the addition made on merits by the Assessing Officer. Being aggrieved, the assessee is in appeal before us. 7. During the hearing, the learned Authorised Representative ("learned A.R.") submitted that the purchases alleged to be non-genuine are in the regular/routine course of business of the assessee and the same amounts to 1.05% of the total purchases. The learned A.R. further submitted that these purchases are from the local market wherein ....
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....gly, ground no.1, raised in assessee's appeal is dismissed. 10. From the record, it is evident that the assessee has alleged to have made bogus purchases from the following parties in the assessment year 2009-10. Sr. No. Name of Parties Bill Amount 1. Rajshree Enterprises Rs.3,66,675 2. Ankita Impex Rs.340 3. Virani Enterprises Rs.8,79,528 4. Keligare Rs.22,00,345 Total: Rs.34,46,888 11. In order to determine the genuineness of the transaction, the Assessing Officer during the re-assessment proceedings, sought details regarding the purchases made from the aforesaid parties as well as the corresponding sales of goods and also directed the assessee to link the purchases with sales supported by bills and vo....
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....oubted. It is settled law that when sales are not doubted, hundred percent disallowance for bogus purchase cannot be done. The rationale being no sales is possible without actual purchases. This proposition is supported from honourable jurisdictional High Court decision in the case of Nikunj Eximp Enterprises (in writ petition no 2860, order dt 18.6.2014). In this case the honourable High Court has upheld hundred percent allowance for the purchases said to be bogus when sales are not doubted. However in that case all the supplies were to government agency. In the present case the facts of the case indicate that assessee has made purchase from the grey market. Making purchases through the grey market gives the assessee savings on account of ....