2023 (10) TMI 511

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....stimated gross profit of 5% on alleged un proved purchases. The penalties levied in all the years are as under: • AY: 2004-05 = 84,042/-, • AY: 2005-06 = 31,791/-, • AY: 2007-08 = 57,454/-, • AY: 2008-09 = 2,8,410/-, • AY: 2009-10 = 2,23,049/-. Since, the facts and issues in all the years are similar arising out of identical set of facts and the orders of the authorities bellow, therefore, same where heard together and have been disposed of by way of the consolidated order. In all the years the facts in briefs are that the Assessee firm deals in interlining cloth and trading in canvass. 2. Here in this case the assessments were for AY: 2004-05, 2005-06, 2007-08 were reop....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....is submitted that the penalty proceedings are initiated only for the addition made by estimating Gross Profit of 5% on the alleged bogus purchases from dealers who are listed as "Hawala" dealers by the Sales Tax authorities. 2. Our clients have always categorically held that purchases from these parties are genuine and to prove and lead evidence of these being genuine purchases, they interalia furnished the following papers/documents. i) Details of Purchases and Sales giving full names and addresses of all the parties (which included purchases from the alleged bogus party also) along with the aggregate value of annual transactions. ii) Detailed inventory of Opening and Closing Stock. iii) Copies of delive....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....Chandak reported in 405 ITR 648 and one selfy of Hon'ble Supreme Court in the case of JMJ essential Oil Company Vs. Ld.CIT wherein, the SLP was dismissed the order of High Court where the Assessee has failed to established genuineness of unaccounted income found in garb of cash sales in accounts and there were sufficient material on record to show that cash sales were made outside books. In the case before the Hon'ble Allahabad High Court (Supra) the issue related to admission of undisclosed income in the statement made in the course of search on which penalty u/s. 271AAB was levied. None of the judgments cited by the Ld. DR has any remote connection with the facts of case of the Assessee nor the principle nor ratio-decendi. Thus, the judgm....