2025 (12) TMI 601

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.... 2011-12, date of order 16/07/2025. The impugned orders were emanated from the orders of the Ld. Income-tax Officer, Ward 1(1), Mumbai (in short, 'Ld AO'), order passed u/s. 271(1)(c) of the Act, date of orders 30/03/2018. 2. All the appeals have same nature of facts and a common issue. Therefore, all the appeals were taken together, heard together and are disposed of by this common order. ITA No. 5734/Mum/2025 is taken as lead case. 3. The brief facts of the case are that the assessee is a Hindu Undivided Family (HUF), engaged in the business of manufacture and trader of HDPE pipes. The assessments were framed u/s. 143(3) r.w.s. 147, date of order 29/03/2024. In the assessment order, the Ld.AO observed that the assessee had purchases....

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....erence of opinion on the same set of facts. This is evident from the fact that the AO made addition of Rs. 68,08,698/- i.e 100% of alleged bogus purchases, which was restricted by CIT(A) to Rs. 8,51,087/- i.e. 12.5% of alleged bogus purchases. On farther appeal to ITAT the Hon'ble ITAT estimated the disallowance to Rs. 6,80,365/- i.e 10% of alleged bogus purchases. Thus it is submitted that the CIT(A) and the Hon'ble ITAT has accepted the fact that purchases are genuine purchases but confirmed the part addition on estimate basis as the concerned parties were not available for verification of the purchase price. Thus, it is respectfully submitted that the additions/disallowances made are only an estimated disallowance without any cog....

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....spectfully rely upon the judgment of the Hon'ble Bombay High Court in PCIT v. Colo Colours Pvt. Ltd., reported in [2025] 178 taxmann.com 458 (Bombay), dated 16 September 2025, wherein similar issues were adjudicated. A consistent view has also been taken by the co-ordinate bench of the ITAT-Mumbai in Kamal H. Shah v. ITO, ITA No. 5542/Mum/2024, pronounced on 21 January 2025. The issue, therefore, stands squarely covered by the aforesaid binding precedents. The addition made by the revenue authorities was based on alleged bogus purchases, and ultimately, the ITAT restricted the disallowance to 10% on an estimated basis. The Ld. DR has not raised any substantive objection to the assessee's contentions. In these circumstances, the penalty l....