2025 (12) TMI 46

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....e addition @ 12.5% of alleged bogus purchases as against the addition made by the Assessing Officer by disallowing the total non-genuine purchases debited by the assessee, ignoring the facts that the assessee failed to produce sufficient documentary evidence before the Assessing Officer to prove the genuineness of the parties and the associated purchase transactions? 2. Whether on the facts and in the circumstances of the case and in law, the Ld. CIT(A) was justified in restricting the addition on account of purchases from the bogus parties to 12.5% ignoring the findings of the Hon'ble Gujarat High Court in the case of N.K. Protein Ltd. vs DCIT, against which the SLP was dismissed by Hon'ble Supreme Court (2017) 84 taxmann.....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....r. CIT Vs Kanak Impex (India) Ltd., Income Tax Appeal No. 791 of 2021. 3. On the other hand, learned authorised representative (ld. AR) of the assessee supported the order of ld. CIT(A). The ld. AR of the assessee submits that assessee is in manufacturing business and making various types of brushes. All the material purchases by assessee were consumed in the manufacturing activities. Both the parties that is H.R. Corporation and D.R. Trader, from whom the purchases were made are registered with VAT Department. During assessment, the assessee furnished ledger copy of both the parties and the bank statement. Despite furnishing complete details of the purchases, the assessing officer disallowed 100% of the purchases shown from both the dea....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....rmation. The ld. AO recorded that nobody attended from such hawala dealers nor file any reply. The assessing officer issued show cause notice to assessee to substantiate the expenditure of such purchases. The assessing officer recorded that no response was received from assessee. The assessing officer on the basis of report of Sales Tax Department and DIT Investigation treated the entire purchases from both the dealers as accommodation entry and disallowed the entire purchases. Before ld. CIT(A), the assessee stated that during assessment, they have furnished ledger copy of bank statement to substantiate the purchases. The purchases were made through account payee cheque. The said details were furnished before assessing officer on 23.01.201....