TMI Blog2024 (4) TMI 586X X X X Extracts X X X X X X X X Extracts X X X X ..... egular books of account in respect of purchases made from the said alleged hawala bogus suppliers also. We find that CIT A has correctly upheld the addition to the extent of 12.5% when the complete stock register showing quantitative details along with undisputed sales are accepted. No infirmity was pointed out by the learned departmental representative that when learned CIT A has followed the decision of Vishwashakti Construction [ 2023 (5) TMI 278 - BOMBAY HIGH COURT] and retained the addition to the extent of 12.5% of the bogus purchases correctly - Decided against revenue. - Shri Prashant Maharishi, AM And Shri Sandeep Singh Karhail, JM For the Assessee : Shri Vimal Punmiya, AR For the Revenue : Shri Manoj Kumar Singh, DR ORDER PER PR ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has indulged in bills-trading without there being no actual trading activity? 4. whether on the facts and in the circumstances of the case and in law, the learned CIT (A) has failed to appreciate that the assessee failed to produce the parties for verification, in spite of opportunity provided by the Assessing Officer. 5. Whether on the facts and in the circumstances of the case and in law, the learned CIT (A) has erred in restricting the addition to 12.5% of the total bogus purchases without examining the quantity tally of day to day purchases, sales, stocks and corresponding values. 6. Whether on the facts and in the circumstances of the case and in law, the learned CIT (A) was erred in deleting the addition made by the Assessing Officer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tment, Maharashtra state. Assessee is one of the party which has obtained the benefit of this bogus sales for assessment year 2011 12. Therefore, notice under section 147 of the act was issued on 21/3/2016. Several other notices were issued. The assessee did not file any reply and therefore a show cause notice was issued under section 142 (1) of the act on 11/11/2016 asking the assessee to why the aforesaid purchases should not be treated as non genuine and added to the total income and also to produce the parties for the verification. The assessee was also required to explain why the book result should not be rejected under section 145 (3) of the act. As no reply has been filed by the assessee , the learned assessing officer was constraine ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he bogus purchases. 05. Learned assessing officer is aggrieved and is in appeal before us. 06. The learned departmental representative supported the order of the learned assessing officer and submitted that when the assessee has failed to give any information to the assessing officer , there is no fault on the side of the learned assessing officer in making the addition to the extent of hundred percent of the bogus purchases. 07. The learned authorized representative submitted a paper book containing 81 pages wherein he submitted the assessment order and appellate order for assessment year 2011 12 as well as the order of the learned CIT A for assessment year 2010 11 to show that in assessment year 2010 11 on similar circumstances the additi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y High Court in case of principal Commissioner of income tax versus Vishwashakti Construction in tax appeal number 1016 of 2018 dated 4/5/2023. The learned CIT A while confirming the addition to the extent of 12.5% of the bogus purchases directed the learned assessing officer to allow deduction of gross profit already returned by the assessee in the regular books of account in respect of purchases made from the said alleged hawala bogus suppliers also. We find that the learned CIT A has correctly upheld the addition to the extent of 12.5% when the complete stock register showing quantitative details along with undisputed sales are accepted. No infirmity was pointed out by the learned departmental representative that when learned CIT A has f ..... X X X X Extracts X X X X X X X X Extracts X X X X
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