2018 (4) TMI 2024

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.... Shri Ram Tiwari. ORDER PER C.N. PRASAD 1. This appeal is filed by the assessee against the order of the Ld. Commissioner of Income Tax (Appeals)-4, Mumbai dated 08.12.2015 for the Assessment Year 2010-11. 2. Inspite of issue of notice none appeared on behalf of the assessee nor filed any adjournment letter. Therefore, we proceed to dispose off the appeal on hearing the Ld.DR. 3. Co....

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....from Sales Tax Department regarding bogus purchases made by the assessee from M/s. Jain Trading Corporation the Assessing Officer prima-facie has reason to believe that the income had escaped assessment therefore the reopening made u/s. 147 is valid. 5. Coming to the merits of the case, the Assessing Officer based on the information of the Sales Tax Department that the assessee purchased materi....

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....ing no reference to order No.  and there is a vague reference of transportations paid. He also observed that the delivery challans reveal the mistake in name of the goods. However, he observed that delivery challan is dated on 29.01.2010 whereas invoice is dated on 12.02.2010 and therefore he concluded that assessee has prepared bogus bills or procured with a view to inflate the expenditure, ....

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....terial in gray market and obtained the bills from the parties. In such circumstances when the sales are accepted the entire purchases cannot be disallowed as non-genuine. 7. Further, the Hon'ble Gujarat High Court in the case of Bholanath Polyfab Pvt. Ltd [355 ITR 290] held that when the assessee made purchases and sold the finished goods as a natural corollary not the entire amount covered....