2026 (6) TMI 1143

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....e impugned Order of the ITAT gives rise to the following questions of law: "A. Whether on the facts and circumstances of the case, the Hon'ble ITAT has erred in deleting the penalty by not appreciating the fact that the assessee failed to prove the genuineness foteh alleged bogus purchases from the Hawala parties during the course of assessment as well as penalty proceedings ? B. Whether on the facts and circumstances of the case, the Hon'ble ITAT has erred in deleting the penalty by not appreciating the fact that the assessee could not produce the alleged bogus parties for verification of genuineness of transaction during assessment proceedings as well as penalty proceedings ? C. Whether on the facts and ....

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....he CIT (Appeals). The CIT (Appeals) restricted the addition of bogus purchases to 12.5%, thereby giving relief to the Assessee of Rs. 62,63,930/-. 5. Aggrieved by the Order passed by the CIT (Appeals), the Assessee as well as the Revenue preferred an Appeal before the ITAT Mumbai. The ITAT, "F" Bench, Mumbai, dismissed the Appeal of the Department and confirmed the decision of the CIT (Appeals) to restrict the addition to 12.5% of bogus purchases, relying upon the decision of the Hon'ble Gujarat High Court in the case of Smith P. Seth. 6. Being aggrieved by the decision of the ITAT, restricting the addition to only 12.5% of the bogus purchases, the Revenue approached this Court by filing Income Tax Appeal No.1327 of 2018. 7. The Ap....