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TMI Blog2018 (1) TMI 688X X X X Extracts X X X X X X X X Extracts X X X X ..... t rate at the rate of 12.5% of bogus purchases by following the decision of Hon’ble Gujarat High Court in the case of Smith P Seth vs. CIT (2013 (10) TMI 1028 - GUJARAT HIGH COURT)- Decided against revenue - ITA No. 5064/Mum/2015 - - - Dated:- 10-11-2017 - Sri Mahavir Singh, JM And Sri G. Manjunatha, AM For the Revenue : Ram Tiwari, DR For the Assessee : Subodh Ratnaparkhi, AR ORDER PER MAHAVIR SINGH, JM: This appeal by the Revenue is arising out of the order of Commissioner of Income Tax (Appeals)-2, Mumbai, [in short CIT(A)] in appeal No. 081/14-15 dated 29.09.2015. The Assessment was framed by the Deputy Commissioner of Income Tax, Circle 3, Mumbai (in short DCIT or AO) for the assessment year 2009-10 vide o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to prove the genuineness of the purchases before the CIT and before CIT(A) (ii) The affidavits filed by the entry providers before Sales Tax Authorities cannot be ignored having evidentiary value. 3. Brief facts are that the assessee is a contractor and filed his return of income for AY 2009-10 on 29-09-2009 and assessment was completed under section 143(3) read with section 147 of the Act on 23-03-2014. The AO received information from Sales Tax Department Of Maharashtra that the assessee is one of the beneficiary to whom bogus purchase bills were provided by the following party: - Sl No. Name Amount 1. Sai Enterprises & ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ties, along with quantity of tally, in respect of goods purchase from Sai Enterpises. Accordingly it is claimed that 87,500 meter of cotton coated fabric, 33,200 meter of P.U. Foam and 2,600 of corrugated box ply, was purchased from Sal Enterprises and same, in toto were supplied to Mahila Kathya Kamgar from the above facts, it is evident that the goods were supplied directly by the manufacturers /traders to the Mahila Kathya Kamgar, as per insturction of the appellant, in which he has procured the orders. The appellant has not incurred any major expenses to carry out the above business. The Ld. A.R. however, cited the rulings in respects of different trades which are not applicable in the case of appellant. 7. During the course o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 10,11,970/-), which will meet the end of justice. Thus all the grounds of appeal, as raised above, are decided accordingly. Aggrieved, Revenue preferred appeal before Tribunal against restriction of profit rate at the rate of 12.5% of bogus purchases. 5. We have heard the rival contentions and gone through the facts and circumstances of the case. We find from the facts of the case that admittedly, these are bogus purchases but assessee has produced complete reconciliation of purchase and sales and also stock tally. Even the payments are by account payee cheque to this party. In such circumstances, even the AO has not doubted the consumption of material purchased and it means that assessee has obtained bogus bill from this party and ..... X X X X Extracts X X X X X X X X Extracts X X X X
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