TaxTMI 
TaxTMI 
2024 (5) TMI 53
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....me-tax Act, 1961 (the Act) dated 19th December, 2018, passed by the Income Tax Officer, Ward 26(2)(3), Mumbai, (the learned Assessing Officer), was dismissed. Therefore, the assessee is aggrieved and has preferred this appeal before us. 02. The only issue in the appeal is the addition confirmed by the learned CIT (A) of Rs.1,15,86,557/-, treating non genuine purchases under Section 68 of the Income-tax Act, 1961 (the Act). The assessee has raised following grounds of appeal:- "1. The learned CIT erred in confirming an addition of Rs.1,15,86,557/- treating the same as Non-genuine purchase under Section 68 of the act income tax act 1961. 2. The appellant craves leave to add further grounds or to amend or alter the existing grounds of ap....
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....on these purchases. Further, the transactions are through banking channel supported by proper bills. The learned Assessing Officer held that the bogus purchases are required to be added to the total income of the assessee. Though in the assessment order in paragraph no.8.2, he categorically recorded that as the purchases have been made by the assessee, which has gone into sale, 12.5% of the cost of disputed purchases should be added. However, as the assessee did not show from whom the goods have been purchased in reality, he made 100% addition of such purchases. The assessment order under Section 143(3) read with section 147 of the Act was passed on 19th December 2018, at the total income of Rs.1,22,59,510/-. The learned Assessing Officer m....
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....ve carefully considered the rival contentions and perused the orders of the lower authorities. The fact clearly shows that assessee is a trader in MST tubes and pipes. Based on sales tax department enquiry and consequent report of DGIT, assessee was found to have indulged into purchases from tainted parties as per Sales Tax Department. Two parties are identified and total of such purchases was Rs.1,15,86,557/-. The learned Assessing Officer made an addition to the extent of 100% of the same, which was confirmed by the learned Commissioner of Income tax (Appeals). Before us, the assessee has given a quantitative chart along with the value to show that alleged bogus purchases are amounting to Rs. 1,15,86,557/- for 1,89,475 kgs, which were sol....