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TMI Blog2017 (1) TMI 898X X X X Extracts X X X X X X X X Extracts X X X X ..... made from the concerned parties are genuine, there is no other option but to estimate the profit element embedded in the bogus purchases. Moreover, we have also noted that the assessee himself before the A.O. as well as ld. CIT(A) had taken an alternate contention to estimate the profit at 8%. Therefore, on an overall consideration of facts and materials on record, we are of the considered view that the ld. CIT(A) was justified in estimating the profit at 8% of the bogus purchases - I.T.A. No.218/Mum/2015, C.O. No.121/Mum/2016 - - - Dated:- 11-11-2016 - SHRI SAKTIJIT DEY, JM AND SHRI M. K. AGARWAL, AM For The Revenue : Shri J. P. Jangid For The Assessee : Shri Bhupendra Shah ORDER Per Saktijit Dey, J. M.: Afores ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 27710551730V 4 Donear Trading Private Limited 27,50,827 27910623885V Total 72,76,393 3. He further noted that as per the investigation conducted by the Sales Tax Authorities, these parties were issuing bogus bills on commission basis without selling any goods or materials. He, therefore, called upon the assessee to furnish necessary details of the purchases. On the basis of the informations submitted by the assessee, the A.O. to ascertain the genuineness of the transactions issued notices u/s.133(6) to the concerned parties, which returned unserved with the postal remark not known ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the enquiries conducted by the Sales Tax Department, the onus is on the assessee to establish the genuineness of the transactions. She observed, merely filing copies of his own ledger accounts and bank statement cannot establish the existence of the concerned parties. Though, ld. CIT(A) agreed with the observations of the A.O. that the assessee has failed to prove the purchases to be genuine, however, considering the fact that the A.O. has not disputed the sales turnover of the assessee, following the decision of the Hon ble Gujarat High Court, she held that the entire purchases cannot be added to the income of the assessee, but only the profit element of such purchase turnover has to be treated as his income. Accordingly, she proceeded ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 706/Mum/2013 3 Hiralal Chunilal Jain 4547/Mum/2014 4 Ganpatraj A Sanghavi 2826/Mum/2013 5 Deepak Popatlal Gala 5920/Mum/2013 6 Ramila P Shah 5246/Mum/2013 7 Tarla Shah 5295/Mum/2013 8 Ramesh Kumar Co. 2959/Mum/2014 9 M/s. Imperial Imp. Exp. 5427/Mum/2015 6. We have considered the submissions of the parties and perused the material on record as well ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... enuine. It is also pertinent to mention here that the assessee had not produced any conclusive proof to establish the fact that the so called goods/materials purchased from the concerned parties were actually delivered at the sites. Therefore, in absence of any evidence to prove the fact that the assessee had actually taken delivery of goods, assessee s claim that purchases were genuine cannot be accepted. Therefore, the assessee s claim that the entire addition should have been deleted is not acceptable. At the same time, it is a fact on record, that the A.O. has not disputed the sales effected by the assessee. Hence, it is quite possible that the assessee might have purchased the goods from some other source. Taking this into consideratio ..... X X X X Extracts X X X X X X X X Extracts X X X X
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