TaxTMI 
TaxTMI 
2023 (10) TMI 1561
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....he Learned Commissioner of Income Tax (Appeals) has erred in law and in facts in confirming addition of 12.5 percent of the alleged bogus purchases from M/s Navkar Diamonds, M/s Milan Co., M/s Mukti Exports, M/s Pankaj Exports, M/s Mouli Gems, M/s Aastha Impex and M/s Naman Exports being 12.5% of Rs. 6, 62,48,443/- which comes to Rs. 82,81,055/- against 100 percent additions made by the Assessing Officer on such alleged bogus purchases. 2. The Learned Commissioner of Income Tax (Appeals) has failed to appreciate the fact that additions were restricted to the tune of 3% only in assessee's own case for previous assessment years namely A.Y. 2010-11, 2011-12 and 2014-15 on alleged bogus purchases thereby failing to follow the princ....
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....g that the appellant could not submit supporting for receipt of goods and utilization of such goods purchased without considering the fact that since the appellant deals in high value goods, such goods are hand delivered and acknowledged by the recipient on the purchase invoice itself. The Learned Commissioner of Income Tax (Appeals) also failed to consider the fact that such goods purchased were further exported by the appellant and corresponding export invoices along with their House Airway & Shipping Bills were already submitted in Assessment Proceedings vide Submission dated 23.10.2019. Moreover, the alleged purchases and their corresponding sales have been properly entered in the stock register and there is quantitative tally of stock.....
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....ogus purchases not pertaining to accommodation entries and restricting the addition to 12.5% 6. Whether on the facts and circumstances of the case the Ld. CIT(A) is right in restricting the addition to 12.5% merely on the basis of filing Income Tax Returns and payment through banking channels when such cases have been identified as bogus purchases. 7. This appeal is being filed as it is covered under the exception provided in para 10(e) of the CBDT's Circular No. 3 of 2018 dated 11.07.2018 as amended vide F. No. 279/Misc. 142/2007- ITJ(Pt) dated 20.08.2018. 8. the appellant prays that the order of the National Faceless Appeal Centre (NFAC), Delhi on the above grounds be reversed and that of the AO be restores.....
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....ellaneous office work like depositing cheques in banks, handing over parcels to clients, making data entry etc. In case of certain employees, their wives are also shown as directors, partners or proprietors in some of the concerns. However, like their husbands, they are merely name lending directors, partners and proprietors and the real control and management of all these concerns in which they are shown as directors, partners or proprietors lie in the hands of Bhanwarlal Jain & Family. 4. Further, information was received from DGIT (Inv.), Mumbai that the assessee had taken accommodation entries of purchases from the following parties for A.Y. 2012-13. Sl. No. Name of the hawala parties (Bhanwarlal Jain group) Bill amount 1....
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....e order of AO preferred an appeal before the Ld.CIT (A) who in turn partly allowed the appeal of the assessee by restricting the addition to the tune of Rs. 82, 81,060/- being 12.5 % of the total bogus purchases. Against this order of Ld.CIT (A) both the assessee as well as revenue is in cross appeal before us. 7. We have gone through the order of AO, order of the Ld.CIT (A) and submissions of the assessee along with grounds of appeal raised by both the sides. It is observed that books of the accounts of the assessee were not disturbed by the AO applying sec. 145 of the act. That means the figure of sales and closing stock were duly accepted by the revenue. The only challenge is the authenticity of amount of purchases debited to the prof....