9911796707
TMI Blog2018 (6) TMI 1183X X X X Extracts X X X X X X X X Extracts X X X X ..... net profit of 12.5% on total alleged bogus purchases from mentined two parties. - I.T.A No. 5499/Mum/2017 - - - Dated:- 20-6-2018 - Shri Mahavir Singh ( Judicial Member) And Shri G Manjunatha (Accountant Member) Appellant by : Shri Rahul Sarda Respondent by : Shri Ram Tiwari ORDER Per G. Manjunatha, AM This appeal filed by the assessee is directed against the order of the CIT(A)-3, Thane dated 30-06-2017 and it pertains to AY 2007-08. The assessee has raised the following grounds of appeal:- I. On the facts and circumstances of the case, the entire reassessment proceedings initiated u/s 147 and notice issued u/s 148 of the Income Tax Act, 1961 ['the Act') by the learned Assessing Office are invalid. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... naire were issued. In response to notice, authorized representative of the assessee appeared from time to time and furnished the details, as called for. During the course of scrutiny assessment proceedings, the assessee was asked to file details in respect of purchases made from M/s Om Navkar Enterprises and N.P. Chemie, in the backdrop of information received from Investigation Wing that the said parties were involved in providing accommodation entries without actual delivery of goods. In response, the assessee, vide letter dated 16-01-2015 submitted that since she had closed down her business on health ground and family matters and for want of peace of mind subject to non levy of penalty was ready to accept gross profit of 15% on the tran ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pliers, whose statements were relied upon by the AO. The assessee further submitted that the AO made addition towards purchase from above parties merely on the basis of statements of third parties ignoring all evidences filed during the course of assessment proceedings including purchase bills, payment proof and details of purchase and sales. Assessee has furnished complete details of sales and purchases and the AO has not doubted sales declared in the year. In the absence of any findings as to the incorrectness of books of account, purchases made from the above parties cannot be considered as bogus, that too, without allowing cross examination of the persons, who gave statements. 5. The CIT(A), after considering relevant submissions of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hases, the Ld.AR for the assessee submitted that the assessee has filed enormous details to prove purchases, however, the AO has ignored all evidences only on the basis of information received from DGIT(Inv) without allowing assessee to cross examine the persons, who gave statements before the sales-tax department. The Ld.AR further submitted tht the AO is incorrect in making addition towards purchases from above two parties only on the basis of statement of third parties ignoring all evidences filed by the assessee. 7. On the other hand, the Ld.DR submitted that the lower authorities have brought out clear facts and stated that the assessee has not proved purchases from above two parties with necessary evidences except filing purchase b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... red by the assessee. Under these facts, it is difficult to accept the findings of the AO that purchases from the above two parties are totally bogus and also it is not supported by valid evidence. Although the assessee has filed certain basic evidence, but, failed to furnish further evidence in the backdrop of findings of Investigation department of sales-tax department. Therefore, we are of the considered view that there is no merit in the argument of the assessee that purchases from above two parties are genuine and supported by valid evidence. 9. Having said so, let us examine what is the addition to be made in these kinds of cases. The co-ordinate bench of ITAT has taken consistent view in case of bogus purchase and depending upon fa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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