2023 (6) TMI 929

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....his appeal by the assessee is directed against the order passed by the CIT(A)-11, Pune on 28-11-2014 in relation to the assessment year 2009-10. 2. It is a recalled matter inasmuch as the earlier order passed by the Tribunal on 08-06-2018 was subsequently recalled vide its latter order dated 07-02-2023 in M.A.No.45/PUN/2022 for disposal of Ground No.10 taken by the assessee in its memorandum of a....

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....essee was called upon to furnish the details of items purchased from these parties along with supporting vouchers, gate passes and lorry receipts etc. so as to prove the genuineness of the transactions. In the absence of the assessee furnishing requisite details, the AO opined that the aforesaid amount of Rs. 43,47,750/- was liable to be added as non-business expenditure. The assessee's contention....

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....les Tax Department about the assessee having obtained accommodation entries. In that view of the matter, the genuineness of the purchase transactions does not get established. At the same time, it is an admitted position that the assessee maintained proper stock records and the said purchases were duly recorded in the books of account. When purchases are bogus and recorded in the books of account,....

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....atio laid down in the aforenoted judgments, it is clear that only the profit element can be added and not the gross amount of bogus purchases. 6. Adverting to the facts of the instant case, it is seen that the assessee made bogus purchases of Rs. 43,47,750/-. As against the amount of such bogus purchases, unutilized surrender of Rs. 36,83,644/- was adjusted by the AO towards the addition, meaning....