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TMI Blog2017 (6) TMI 299X X X X Extracts X X X X X X X X Extracts X X X X ..... arious taxes by use of unaccounted money to the assessee. On a similar situation, Hon’ble Gujarat High Court in the case of Simit P.Sheth (2013 (10) TMI 1028 - GUJARAT HIGH COURT) has upheld the disallowance of 12.5% of the bogus purchases. Since the proposition that when sales are not disputed, entire purchases cannot be held to be bogus is supported by Hon’ble jurisdictional High Court decision in Nikunj Exim Enterprises [2013 (1) TMI 88 - BOMBAY HIGH COURT], in considered opinion, the interest of justice will be served if the addition in this case is restricted to 12.5% of the bogus purchases. Appeal filed by the assessee stands partly allowed. - ITA No. 1552/Mum/2017 - - - Dated:- 5-6-2017 - Shri Shamim Yahya, Accountant Member ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by treating the purchases as bogus / non-genuine is unjustified and the same may be deleted. (iii) Without prejudice to the above the Ld. CIT(A) erred in upholding the action of the Ld. A.O. in making addition of ₹ 36,32,266/- on the basis of certain statements given by some parties under section 14 of the Maharashtra Value Added Tax Act without providing the Appellant an opportunity of cross examining them relying on whose statement anadverse inference has been drawn against the Appellant. Hence, the addition of ₹ 36,32,266/- is unjustified and the same may be deleted. 3. The Ld. CIT(A) erred in levying interest under section 234B and 234C of the Act without appreciating the fact that Appellant denies his liability ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pporting evidences along with their books of accounts. The assessee failed to avail the opportunities and to produce the vital documents like purchase and sales invoices and matching corresponding purchases and sales, delivery challans, port receipts etc. Finally AR filed a letter on 13-03- 2015, in Tapal, stating that due to fire accident in the premises all the documents have been burnt/ misplaced. It is also stated that the parties could not be contacted and produced for cross examination. AO did not accepted the contentions for the reason that despite giving several opportunities the AR could not furnish any details and the names of the nongenuine dealers from whom the appellant made purchases are appearing in the list published in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .2017. 8. Upon careful consideration, I find that the Revenue has not disputed the sales. It is settled law that when the sales are not disputed, the entire purchases to make the sales cannot be disallowed. It is true that assessee has not at all been able to prove that the purchases from the parties booked on the accounts are genuine. No book and records have been shown. However, in the absence of any finding that sales are also bogus, the purchases to make the corresponding sales cannot be held to be completely bogus. This points out to the practice that assessee had made purchases from grey market. Operating in the grey market leads to various savings on account of non-payment of various taxes by use of unaccounted money to the assess ..... X X X X Extracts X X X X X X X X Extracts X X X X
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