TaxTMI 
TaxTMI 
2026 (2) TMI 499
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.... out of the judgment and order dated 1.4.2024 passed by the Income Tax Appellate Tribunal, Surat (for short 'the Tribunal') in ITA No.45/SRT/2024 for the Assessment Year 2013- 14. "(i) Whether on the facts and circumstances of the case and in law, the Hon'ble ITAT has justified in dismissing the appeal of the Revenue against the decision of the Ld CIT(A) in restricting the addition made by the AO at the rate of 100% of bogus purchases amounting to Rs. 225,29,05,048/- to 6% of the bogus purchases, ignoring the fact that these purchases are sham transactions fabricated through bogus paper concerns of Bhanwarlal Jain Group companies which were engaged in providing accommodation entries? (ii) Whether, on the facts and in t....
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....gus, entire amount of bogus expenditure was to be added to income of Assessee"? * the ratio of judgement of Hon'ble Apex Court on the issue of unexplained expenditure (bogus purchase) in the case of N.K. Proteins v. Dy. CIT [2017] 84 taxmann.com 195/250 Taxman 22 (SC) wherein, the SLP filed by the assessee has been dismissed by the Hon'ble Apex Court * (v) Whether on the facts and circumstance of the case and in law, the Hon'ble ITAT is justified in dismissing the appeal of the revenue wherein the AO has made 100% addition of bogus transaction amounting to Rs. 225,29,05,048/-made by the Assessee with the entry provider not appreciating that non-genuineness of the expenditure booked was established by the inform....
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....ing the binding precedent, we dismiss these three appeals of Revenue." [6] This Court in case of Pankaj K. Choudhary (Supra) while dismissing the Tax Appeal No.617 of 2022 has held as under: "5. The Assessing Officer noticed the contentions of the assessee that confirmation, purchase bills, bank statement, stock register, copy of ITR were already filed. The Assessing Officer was, however, of the view that transactions were bogus and merely that it routed through the banking channel, was not sufficient to conclude that they were the genuine transactions. The contention of the assessee that he had not dealt with the Bhanvarlal Jain group was also negatived. The appellate Commissioner took the view that disallowance was requi....
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....e is restricted to 12.5% of the impugned purchases for the assessment year in appeal." 5.2 The disallowance at 100% was made in the assessment order for the year under consideration to the tune of Rs. 4,34,00,343/-, which was reduced to 12.5% at Rs. 54,25,040/-. Thereafter, the issue was delat with by the appellate Tribunal. The appellate Tribunal endorsed to the view taken by the appellate Commissioner. It was observed that Assessing Officer failed to consider the evidence furnished by the assessee. 5.3 Considering the facts and relevant aspect, the Income Tax Appellate Tribunal partially allowed the appeal of the assessee to further reduce the disallowance at 6%. In so concluding, the Tribunal observed in paragraph No.21....
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....evenue leakage. Therefore, considering overall facts and circumstances of the present case, we are of the view that disallowances @ 6% of impugned purchases / disputed purchases would be sufficient to meet the possibility of revenue leakage. In the result the ground No. 2 of appeal raised by the assessee is partly allowed and the grounds of appeal raised by revenue are dismissed." 6. The view taken and the conclusion arrived at by the appellant Tribunal are based on material before it and after analysing the facts and figure available before it. When the Tribunal has thought it fit to reduce the disallowance at 6% from 12.5%, the Tribunal had before it the facts which were duly analysed by it. No interference is called for in the s....