2024 (7) TMI 1225

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.... r.w.s. 147 of the Income-tax Act, 1961 (hereinafter referred to as the "Act"), dated 17.03.2016 for Assessment Year 2011-12. 2. Grounds taken by the assessee are reproduced as under: "1. (a) On facts and circumstances of the case and in law, Ld. CIT(A) erred in dismissing the appeal and sustaining the addition as it is a proven fact by various judicial authorities that sales without purchases is not possible for a trader. (b) The CIT (A) erred in sustaining to 25% addition without appreciating the understated vital facts that the purchases are duly supported with necessary documentary evidences including quantitative tally of purchases and sales and there appears no sign of it being bogus and the learned officer has no....

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....5% of the alleged bogus purchases of Rs. 2,15,88,627/- which was confirmed by ld. CIT(A). 4. Briefly stated facts are that assessee filed his return of income on 16.08.2011 reporting total income at Rs. 4,90,648/-. Case of the assessee was re-opened u/s. 147 by issuing notice u/s. 148 on 05.11.2014 after receipt of information from DGIT (Inv) Wing, Mumbai, that assessee is a beneficiary for hawala purchase entries from 12 different parties totalling to Rs. 2,15,88,627/-. The ld. Assessing Officer asked the assessee to furnish supporting documents for purchases made from the 12 parties along with supporting documents for corresponding sales affected by the assessee. Assessee furnished certain details in compliance to the notices issued by....

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.... the bogus purchases". The Coordinate Bench had set aside the order of ld. CIT(A) and directed the ld. Assessing Officer to apply rate of 4%. 6. Per contra, ld. Sr. DR placed reliance on the orders of the authorities below, since assessee could not substantiate his claim by furnishing all the relevant necessary documentary evidences. 7. We find that under the given set of facts before us in the present case, the matter is covered by the Co-ordinate Bench of ITAT, Mumbai in assessee's own case for AY 2009-10 (Supra), wherein profit rate of 4% has been directed to be applied on the alleged bogus purchases. Also, in the decision of Co-ordinate Bench in assessee's own case for Assessment Year 2010-11 in ITA No.1646/Mum/2024, dated 18.07.2....