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TMI Blog2017 (3) TMI 1656X X X X Extracts X X X X X X X X Extracts X X X X ..... g all addition to made by the Assessing Officer is to be set aside - Decided in favour of assessee. X X X X Extracts X X X X X X X X Extracts X X X X ..... e assessee to prove the genuineness of the purchases, that the profit element embedded in the purchases had to be brought to tax.Estimating the gross profit @ 12.5% of the unproved purchases of ₹ 1.35crores, he made an addition of ₹ 16.99 lakhs to the income of the assessee. 3.Aggrieved by the order of AO,the assessee preferred an appeal before the First Appellate Authority(FAA).Before him,the assessee made elaborate submissions and relied upon several case laws.Before him,it was argued that the assessee had filed ledger copies of the parties, sales details, that the purchases were fully backed by authenticated invoices, that she had made payment through banking channels,that the stock register and the consumption chart showed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... No.5246/M/2013 A.Y.10-11); Shri Deepak Popatlal Gala (ITA No.5920/Mum/2013 A.Y.2010-11,dated 27/3/2015); Ramesh Kumar and Co.(ITA No.2959/Mum/2014 A.Y.2010- 11 dated 28/11/2014); Shri Rajeev G. Kalathil (ITA No.6727/Mum/2012 A.Y.2009-10 dated 20/08/2014);Shri Ganpatraj A. Sanghavi (ITA No.2826/Mum/2013 A.Y. 2009-10 dt.5/11/2 014 and Shri Hiralal Chunilal Jain (ITA No.4547/Mum/2014 dated 01/01/2016. The DR supported the order of the FAA. 5.We have heard the rival submissions and perused the material before us.We find that in the case of Imperial Imp. & Exp. (supra) identical issue has been deliberated upon and has been decided by the Tribunal .We are reproducing the relevant portion consisting the facts of the case, order of the FAA, argume ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ve been VAT dodgers by the Mahrashtra VAT Department. The Assessing Officer noted that since sales have been effected by the assessee, which showed that assessee was actually in possession of goods, the material would have been procured from grey market without bills in order to cover up the purchases, and thus assessee would have taken accommodation bills for purchases from the said four parties amounting to ₹ 77,51,496/-. Accordingly, the Assessing Officer brought to tax the profit margin in relation to such non-genuine purchases, which he computed by applying the rate of 12.5% on the total amount of ₹ 77,51,496/-, which came to ₹ 9,68,937/-. 3.1 The plea of the assessee before the Assessing Officer as well as before t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y of exports and, therefore, there was no liability towards sales tax on the purchases effected by it. It was also contended that though the Assessing Officer has referred to the four parties having been listed as 'hawala operators' by the Sales Tax Department of the Government of Maharashtra, but there is no clear evidence to suggest that the transaction with the assessee were bogus. It is pointed out that in the cases of some other assessees, under identical circumstances, the Coordinate Benches of the Tribunal have deleted the additions. In this connection, reliance have been placed on the following decisions:- (1) ITO vs. Shri Deepak Popatlal Gala inITANo.5920/Mum/2013 (A.Y 2010-11) dated 27/03/2015; (2)Ramesh Kumar and Co. V/s. ACI ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d from the Sales Tax Department of the Government of Maharashtra. Quite clearly, the Assessing Officer as well as CIT(Appeals) have taken note of the fact that no sales could have been effected by the assessee without purchases. In the present case, assessee has explained that all its sales are by way of exports. The books of account maintained by the assessee show payment for effecting such purchases by account payee cheques and also the vouchers for sale and purchase of goods, etc. Notably, no independent enquiries have been conducted by the Assessing Officer. Under identical circumstances, our Co-ordinate Benches in the cases of Deepak Popatwala Gal (supra), Shri Rajeev G. Kalathil(supra)and Ramesh Kumar and Co.(supra) have held that the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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