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TMI Blog2017 (9) TMI 1345X X X X Extracts X X X X X X X X Extracts X X X X ..... ircumstances of the case and in law, the learned CIT(A) erred in confirming the learned Assessing Officer's stand of reopening the assessment u/s 147 of the Income Tax Act. The appellant prays that the reopening of assessment u/ s 147 of the Income Tax Act may be declared bad in law and reassessment order may please be cancelled. 2) On the facts and in the circumstances of the case and in law, the learned CIT(A) erred in confirming the Learned Assessing Officer's stand for not providing the documentary evidence and cross examination so called hawala dealer or bogus supplier of goods which had been sought by the appellant during the course of assessment proceedings further FAA also ignoring the appellant plea and request to provid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... - 11 against the assessee declared the profit of Rs. 22,09,270/-. 6) On the facts and in the circumstances of the case and in law, the learned CIT(A) erred disallowance of purchases on adhoc basis without any justification. 7) The learned CIT(A) has been in absolute confused state of mind while concluding the appeal which is clearly seen from the Para 7.13 "Considering the facts as discussed above and on account of appellant's non furnishing of required details in prescribed format, as above, in my considered opinion, the estimation of GP @ 13.54% as declared in the A. Y. 2011 - 12, will be justified in the case of appellant. Since the suppressed GP i.e. Rs. 26,41,473/- (Rs 13,90,24,930/- x 1.9/100), is more than 25% of bogus ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d G.P. out of total bogus purchases even though- (i) The assessee could not produce primary evidences like Octroi Receipts, Delivery Challan etc. evidence to prove the genuineness of the purchases before the AO and before CIT(A). (ii) The affidavits filed by the entry providers before Sales Tax Authorities cannot be ignored having evidentiary value. (iv) The order of the CIT (A) may be vacated and that of the Assessing Officer may be restored. 3. Brief facts of the case are that the assessee is a Partnership Firm engaged in the business of trading of Coal and Chemicals, filed its return of income for relevant AY on 16.10.2010 declaring total income of Rs. 22,09,270/-. The return was processed u/s 143(1) of the Act. Subsequently, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 13.54% restricted the disallowance of Rs. 26,41,473/-. The disallowance restricted by ld. CIT(A) is about 38% of the aggregate of the alleged bogus purchases. The ld. AR of the assessee further argued that the AO made the addition on the basis of third party information without making any independent enquiry. The assessee has furnished necessary evidence in support of his expenditure incurred on purchase during the relevant financial year. It was argued that the disallowance is on very higher side and may be restricted on the reasonable basis. On the other hand the ld. DR for the Revenue argued that Investigation Wing of the Income-tax Department made full-fledged enquiry. The parties from whom assessee has shown the purchases were hawala ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ond substantial Ground of appeal raised by assessee and the sole ground of appeal raised by Revenue are interconnected. The AO while framing the assessment order observed that the assessee has shown the purchases of Rs. 69,60,124/- from 11 parties whose name are appeared in the list of persons who were indulged in providing the bogus bills without delivery of goods. The assessee was asked to produce the details of purchases. The assessee could not produce satisfactory evidences with regard to transportation, delivery challan, goods receiving note and Octroi receipt. Notice u/s 133(6) sent to those parties were returned unserved. Thus, the AO made the disallowance of aggregate of the purchases from all 11 parties of Rs. 69,60,124/-. The ld. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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