TaxTMI 
TaxTMI 
TaxTMI 
2017 (7) TMI 1482
X X X X Extracts X X X X
X X X X Extracts X X X X
.... bogus purchases made from hawala parties being 8% of the total suspected purchases ignoring the fact that the addition was made on the basis of information received from sales tax department that the hawala parties are not doing any genuine business. 2. On the facts and in the circumstances of the case and in law, the Ld.CIT (A) erred in deleting the total addition of Rs 83,83,717/- to Rs 6,70,697/- ignoring the facts that during the course of survey u/s 133A of the Act on 07/12/2011 conducted by the Investigation Wing of DGIT(Inv.), Mumbai, the assessee in his statement under oath admitted that he had made purchase from fictitious concerns controlled by one Shri Mafatlal Shah and other concerns. 3. On the facts and in th....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... 5,63,604 2 NEELAM ENTERPRISES 9,37,930 3 JINAL ENTERPRISES 5,73,342 1 RAJGURU CORPORATION 5,53,133 5 KRISH ENTERPRISES 2,11,859 6. CARBON ENTERPRISES 10,92,771 7 SAM ENTERPRISES 8,07,556 8 V.S.K. ENTERPRISES 10,92,771 g MAKEWELL TRADERS 9,32,443 10. FORAM TRADERS 8,11,467 11. JAIN TRADING CORPORATION 8,06,841 TOTAL 83,83,717 3.2 The Sales Tax Department had taken statement, deposition and affidavit of hundreds of persons who were behind running the racket of issuing bills for a commission. ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ntiating the claim. The assessee could-not produce! the parties and the notices u/s, 133(6) were issued have been retuned unserved / unclaimed. The assessee has not been able to rebut the evidences, depositions and statements of hawala operators, the persons the given address. The A.O. also noted that in survey proceedings assessee has himself accepted that these purchase bills are bogus. Therefore, the A.O. held that these purchases of the assessee are bogus. 3.4 On this ground the purchases made from 11 parties for Rs. 83,83,717/- have been added by as non-genuine / bogus purchases. 4. Upon assessee's appeal, the learned CIT (A) reduced the addition to 8% of bogus purchases by holding as under:- I have gone through the....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... that as far as he is concerned, he has discharged his tax related liabilities in an accurate manner. So therefore, while on one hand the AO may not have had a clinching proof but the primary responsibility which is ensured on the tax payer, has also, not .been .discharged in terms of establishing the genuineness of the transaction. Merely filing copies of his own ledger accounts and bank accounts does In no way establish that the parties actually existed, but then considering that the books of accounts have not been disputed, sales have not been disputed and neither cheques have been shown to be received back as cash by the appellant, I am of the considered view that in the context of the situation where; the AO has herself said that what ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....chase are bogus. Cogent information has been received from the Maharashtra sales tax Department that the suppliers have admitted that they were supplying bogus bills. The assessing officer also has also made enquiries. No response to his notices came from the suppliers. In the survey proceeding assessee himself accepted that he has obtained bogus bills from these parties. Learned CIT-A in his appellate order has also found that the purchases are bogus. 6.2 Up on careful consideration of the facts of the case, we find that overwhelming evidence have been referred by the authorities below that the impugned purchases are bogus. There is no evidence of the actual movement of the goods under dispute. In these circumstances learned departmenta....