TaxTMI 
TaxTMI 
2025 (10) TMI 221
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....lhi for the assessment year 2014-15 u/s. 143(3) of the Income Tax Act, 1961 (hereinafter called the "Act") vide his order dated 13.2.2016. 2. First we deal with Revenue's Appeal No. 5877/Del/2017. The only issue in this Appeal of the Revenue is as regards the order of the Ld. CIT(A) deleting the addition made by the AO on account of bogus purchases of textile commodities amounting to Rs. 3,82,66,575/-. 3. Brief facts of the case are that assessee is engaged in the business of running the cruiseship and earns income from tourism business by way of cruise conducted on the Brahmaputra River. The assessee's case was selected for limited scrutiny by issuing notice u/s. 143(2) of the Act, and in response to the same, return was filed by the....
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....charges for the items purchased, name and address of the godown where the goods were kept. As the assessee has not produced any supporting evidences in support of its claim, AO held that these purchases are bogus claim of deduction and therefore, he added this amount of Rs. 3,82,66,575/- as unexplained purchases. For this, the AO also recorded that the entire purchases declared by the assessee is fictitious and this bogus purchase is generated to set off against the receipts of the assessee from tourism activities and to reduce the high profit generated from tourism activity. The assessee has adopted the ploy of showing these bogus purchases in textile commodities. Therefore, finally, AO held as under in para 4.8:- "4.8 As the asse....
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.... actually receipts from tourism activity and to reduce the high profit generated from the said activity, the assessee has adopted the ploy of showing this bogus transaction in textile commodity. By doing so, the assessee has on one hand, claimed excess deduction as per tourism activity to textile sale lases and has changed the nature of receipts from In view of the same, it is only the bogus purchase claimed as deduction which is disallowed and the receipts side of the P&L account has not been disturbed because admittedly the entire receipts i.e. Rs. 6,15,07,898/- are 'revenue from operations'. Accordingly, the sham purchase of textiles is disallowed and added back to the total income of the assessee. I am satisfied that the assesse....
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.... The appellant has made purchases and for that it has made payment by account payee cheque during the year and in FY 2014-15. Similarly, the payment from the sales have been received during the year and in subsequent year through account payee cheque and in support of its contention, appellant has filed copies of bank statements establishing the payment made to the sellers as well as payment received from the purchasers. Appellant has also filed copies of the bills of the purchases and sales made. Simply because the parties from whom purchases were made were not found on the given address, it cannot be held that purchases shown are bogus. If the sales as well as profit declared thereon have been accepted as genuine then there is no question....
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....st making a total of Rs. 4,46,84,835/-. It is noted that assessee has earned gross profit of Rs. 84,80,760/- from this textile business. It is a fact that assessee has declared loss returned of Rs. 4,59,17,763/- because which is a carry forward loss from earlier year, which was allowed to be brought forward by the department amounting to Rs. 8,77,05,553/- and out of this, after declaring profit of Rs. 84,80,760/- from trading in textile industry and receipts from Cruise business at Rs. 6,15,07,898/- balance remains the loss. The entire premise of the assessee is on two aspects for making disallowance of bogus purchase (i) that the assessee want to set off profit arising out of the business receipts of cruise business, but that is not the ca....
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....Revenue was received somewhere in February, 2022 fixing the date of hearing on 3.3.2022. After that the assessee was not served with grounds of appeal and appeal memo in Form no. 36 as the assessee has obtained the appeal memo supported by the grounds of appeal and after going through the same the assessee filed this Cross Objection with a delay. Hence, it was requested that the delay in dispute be condoned and also filed an affidavit supporting the contention of the condonation petition. After going through the reasons stated in the condonation petition, which were not controverted by the Sr. DR, we condone the delay in dispute and admit this cross objection. 8. The assessee has challenged that notice u/s. 143(2) of the Act which was no....