2025 (5) TMI 361

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... Section 250 of the Income-tax Act, 1961 [hereinafter referred to as "the Act" for short], for Assessment Year (AY) 2021-22. 2. The Assessee has taken following grounds of appeal:- "1. That on facts, in law, and on evidence on record, the learned NFAC has grievously erred in confirming the disallowance @ 2% (out of 3.92% made by AO) of the alleged bogus purchases of Rs. 12,61,68,630/- without any basis and on presumption only. 2. That on facts, in law, and on evidence on record, the learned NFAC ought to have deleted the entire addition in respect of alleged bogus purchases, as prayed for." 3. The brief facts of the case are that the assessee has been carrying on wholesale business in Jeera, Souff, Oil Seeds, Methi, ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... disallowance @ 2% of the alleged bogus purchases of Rs. 12,61,68,630/-, the assessee is now in appeal before the Tribunal. 8. We have heard the rival contentions and perused the material available on record. We find that the reason for making the impugned addition was that, in response to the notice issued to the parties u/s 133(6) of the Act, no reply was submitted by any of the parties for confirmation of purchases made by the assessee. The Assessing Officer therefore disallowed 3.92% of total purchase considering it to be bogus purchase. The Ld. CIT(A) reduced the same to 2% of the alleged bogus purchases of Rs. 12,61,68,630/-, by observing as under:- "5.1 I have gone through the facts of the case, findings by the AO and the....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....yani) and Raiyaraj Industries are also shown as sales made to me in their books of accounts also. Both of them have shown sales made to my firm in their GSTR-1 Returns and therefore their sales are reflected as my purchases in my GSTR-9 Table 8A. 2. Payment for purchases is made by RTGS through my Firm's two Bank Accounts with Kotak Mahindra Bank. 3. Goods have been moved from Gondal to my place or to the Buyers to whom I have sold these goods. 4. Goods purchased are duly recorded in my books and sales have also been made of these goods and whatever goods were not sold on 31- 03-2021 was shown in closing stock and sold in next year. 5. The purchase transactions with these two Parties are not dubious or do....