2025 (7) TMI 1592

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....r emanated from the order of the Income-tax Officer-19(1)(3), Mumbai [in short, "Ld. AO"] passed under section 143(3) r.w.s. 147 of the Act, 1961, date of order 26/06/2016. 2. the brief facts of the case are that the assessee filed the return under section 139(1) of the Act. The case was reopened under section 148 of the Act on the basis of information received from Sales-tax Department and the same has been forwarded by the DGIT (Inv), Mumbai to the Ld. AO. During the assessment proceedings, the Ld.AO found that the assessee has made bogus purchases amount Rs. 4,73,87,306/-. The Ld.AO considering the assessee's business and verified the few parties related to alleged purchases had confirmed the addition @12.5% of gross profit on alleged....

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....s below:- "7 We on have considered the submission behalf of the revenue. However, from the order of the Tribunal dated 30.04.2010, we find that the Tribunal has deleted the additions on account of bogus purchases not only on the basis of stock statement i.e. reconciliation statement, but also in view of the other facts. The Tribunal records that the Books of Accounts of the respondent-assessee have not been rejected. Similarly, the sales have not been doubted and it is an admitted position that substantial amount of sales have been made to the Government Department i.e. Defence Research and Development Laboratory, Hyderabad. Further, there were confirmation letters filed by the suppliers, copies of invoices for purchases as well as....

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....h) Goods dispatched from (name of the place) with date (i) Mode of transportation, if by Road Vehicle No. and also payments, detailed in the annexure-A." 5. The Ld.DR fully stands in favour of the order of the revenue authorities but was unable to rebut by submitting any of the contrary judgement. 6. We have heard the rival submissions and perused the material available on record. The Ld. AO determined the gross profit rate at 12.5% on the alleged bogus purchases amounting to Rs. 4,73,87,306/-. The assessee submitted a year-wise chart analyzing the gross profit for Assessment Years 2008-09 to 2012-13, which reflects an average gross profit rate of 2.73% in the assessee's line of business. Upon perusal of the impugned assessme....