2019 (2) TMI 2143

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....evenue read as under: 1. "On the facts and in the circumstances of the case and in law, the Ld. CIT (A) has erred in estimating the profit at 12.5% on the total bogus purchases of Rs. 1,92,95,724/- ." 2. "On the facts and in the circumstances of the case and in law, the Ld. CIT (A) has erred in not considering that the addition was made on the basis of information received from DIT(Inv.) and Sales Tax Department, Maharashtra with regard to bogus purchase made by the assessee from 22 parties without supply of actual goods." 3. "On the facts and in the circumstances of the case and in law, the Ld. CIT (A) has erred in not considering that hawala operators have admitted on oath before the Sales Tax Authorities t....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... offered on sales of alleged bogus purchases should be set off against the estimated gross profit of 12.5% on alleged bogus purchases. 4. Brief facts of the case are as that the assessee is a firm and is engaged in the business of civil contractor. The AO had the information that some of the parties from whom the assessee had made purchases were bogus and they are engaged in the business of providing bills without actual delivery of goods. The names of the party are as under:- S.No. Name of Seller Amount 1 Raj Traders 63,821 2 Parshva& Co. 3,00,331 3 Jain Trading Corp 14,46,336 4 Anmol Industries 2,17,565 5 Mihir Sales Pvt. Ltd. 14,20,500 6 K C Enterprises 8,24,990 7 Sh....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... cheque. Referring to Hon'ble Gujarat High Court decision in the case of CIT vs. Simit P. Sheth (2013) 356 ITR 451(Guj), he observed that 12.5% disallowance of the bogus in this case suffices. Therefore, the ld. CIT (A) concluded as under: 5.7 The suppliers were found to be engaged in providing bogus bill without actual dealing of goods. The appellant made payments for these purchases by account payee cheques duly cleared through normal banking channel; and are duly reflected in the appellant's bank statements. Before the A.O., the appellant produced documentary evidence like copies of invoices and ledger accounts of the vendors in the appellant's books of account recording these purchases to substantiate the genuineness of these p....