9911796707
TMI Blog2017 (11) TMI 1197X X X X Extracts X X X X X X X X Extracts X X X X ..... and the payments were through banking channels. On the other hand, the assessee could not produce confirmations from the alleged bogus suppliers and further notices sent u/s 133(6) were returned back undelivered in both the cases. Therefore, in such a situation, the addition, which could be made, was to account for profit element embedded in these purchase transactions to factorize for profit elem ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... umbai dated 20/10/2016 qua relief provided to the assessee against certain bogus purchases of ₹ 47,45,081/-. 2.1 Briefly stated the assessee being resident corporate assessee engaged in the business of manufacturing of gold ornaments, was subjected to an assessment u/s 143(3) read with Section 147 for impugned AY on 19/03/2015 at ₹ 55,78,510/- after addition of bogus purchases for & ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ses were genuine since the goods manufactured out of the purchases were sold subsequently and there could be no sale without purchase. However, not convinced, Ld. AO, placing reliance on several judicial pronouncements, treated the same as bogus purchases and added the same to the income of the assessee. 3. Aggrieved, the assessee contested the same with success before Ld. CIT(A) vide impugned ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mere payment through banking channels was not sufficient to prove the same since no confirmations etc. was filed by the assessee before lower authorities and none of the parties could be produced for confirmation of purchases. 5. Per Contra, Ld. Representative for Assessee [AR] contended that the turnover was accepted and books were not rejected. The accounts were duly audited and the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vered in both the cases. Therefore, in such a situation, the addition, which could be made, was to account for profit element embedded in these purchase transactions to factorize for profit element earned by assessee against possible purchase of material in the grey market and undue benefit of VAT against bogus purchases. We estimate the same @5% since the goods in question were subjected to VAT r ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
