2023 (8) TMI 770

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.... Shah ORDER 1. The following four substantial questions of law have been proposed in the appeal. QUESTION OF LAW 1. In the facts and circumstances of the case and in Law whether the Hon'ble ITAT order is correct in view of the Hon'ble Supreme Court decision in N.K. Protein Ltd. Which is upheld 100% addition in that case on account of bogus purchases? 2. Whether on the facts and circumstance....

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.... style of M/s. Shoe Box Inc. Respondent had a retail store selling footwear, bags, belts, wallets etc. Respondent filed his return of income on 29th September 2009 for Assessment Year 2009-10 declaring a total income of Rs. 6,64,570/-. Regular assessment was completed under Section 143(3) of the Income Tax Act, 1961 (the Act) on 12th December 2011 accepting the returned income. On 28th March 2013 ....

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.... under Section 143 read with Section 147 of the Act was completed on 30th March 2014 determining total income at Rs. 97,58,670/-. 3. The Assessment Order was impugned before the Commissioner of Income Tax (Appeals) (CIT[A]). The CIT[A] partly allowed the appeal. It was also observed that the A.O. did not doubt the sale and himself has held that purchases were made from parties other than the bogu....

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....not applicable to these bogus purchases as only profit has to be added in the income of the assessee. The only issue that requires to be considered is with respect to the extent of ad-hoc dis-allowance with respect to bogus purchases. Whether purchases were bogus or whether the parties from whom such purchases were allegedly made were bogus is essentially a question of fact. Mr. Sharma relied upon....