TaxTMI 
TaxTMI 
2024 (4) TMI 586
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....er section 147 read with section 144 of The Income Tax Act (The Act) dated 6/12/2016 passed by the learned assessing officer, was partly allowed. 02. Following grounds of appeal are raised :- "1. Whether on the facts and in the circumstances of the case and in law, the learned CIT (A) was erred in restricting the addition made on account of bogus purchase to 12.5% of total bogus purchases ignoring the fact that the Sales Tax Department has proved beyond doubt that the parties declared as hawala traders were involved in providing accommodation entry of purchases and the assessee was one of the beneficiary of accepting accommodation entry for the purchase. 2. Whether on the facts and circumstances of the case and in law t....
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....r on the facts and in the circumstances of the case and n law, the learned CIT (A) has erred in deleting the addition made by the Assessing Officer without appreciating the facts that during the assessment proceedings assessee has failed to substantiate the sales corresponding to bogus purchases whereas the learned CIT (A) has relied on the case law's relevant to the cases wherein the assessee submitted its reply of bogus purchases and the correspondence sale with substantiate proof. 8. This appeal is being filed as it is covered under the exception provided in para 10( e) of the CBDT's circular no.3 of 2018 dated 11.07.2018 as amended vide F.No.279/Misc.142/2007-ITJ (pt) dated 20.08.2018." 03. Brief facts of the case shows that....
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....g officer passed an assessment order under section 144 read with section 147 of the act on 6/12/2016 making addition to the extent of hundred percent of such non genuine purchases. The total income of the assessee was assessed at Rs. 8,711,029/-. 04. Aggrieved, assessee preferred an appeal before the learned CIT - A challenging the action of reopening of the assessment as well as the addition on the basis of the merits of the case. The learned CIT - A upheld reopening of the assessment, however, with respect to the total addition of Rs. 7,804,309/- as bogus purchases, it was found that assessee has returned a gross profit of 9.81% which is reasonably very high. The learned CIT - A further noted that in assessee's own case for assessm....
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....lleged bogus parties. Stock register is also submitted along with the bank statement showing that the payments to alleged bogus parties have been made by the account by cheque supported by sales bills. The learned authorized representative further placed a very lengthy written submission containing 38 pages on the issue. The same was reiterated before us. 08. We have carefully considered the rival contention and perused the orders of the lower authorities. We find that assessee is a partnership firm engaged in the business as trader in ferrous and nonferrous metals. It filed its return of income disclosing total income of Rs. 906,720/-. The assessee is found to have indulged into bogus purchases from seven different parties amounting to ....