9911796707
TMI Blog2018 (7) TMI 1085X X X X Extracts X X X X X X X X Extracts X X X X ..... No.5853/Mum/2015, AY 2009-10 2. The revenue is against the order of Ld. Commissioner of Income-Tax (Appeals)-25 [CIT(A)], Mumbai, Appeal No.CIT(A)-25/IT/159/13-14 dated 09/10/2015 qua relief provided to the assessee on account of alleged bogus purchases. The assessee being resident individual was engaged in Trading of iron & steel under proprietorship concern namely Arham Empires. The assessment for impugned AY was framed by Ld. Deputy Commissioner of Income Tax-22(1), Mumbai [AO] u/s 143 read with Section 147 of the Income Tax Act, 1961 on 18/03/2013 wherein the income of the assessee has been assessed at Rs. 248.48 Lacs after certain additions as against returned income of Rs. 11.67 Lacs filed by the assessee on 30/09/2009. As evident ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rom 1.77% to 3.5%, which has led to another addition of Rs. 6,62,475/- in the hands of the assessee. 4.2 Apart from above addition, the assessee, in similar manner, was saddled with another addition of Rs. 3,04,980/- on account of purchases made from an entity namely Amee Enterprises since the transactions with this entity also remained unsubstantiated and notice issued u/s 133(6) was returned undelivered by the postal authorities. 5. Aggrieved, the assessee contested the same with partial success before Ld. CIT(A) vide impugned order dated 09/10/2015 wherein Ld. CIT(A), placing onus on Ld. AO to ascertain factual position, estimated additions of 1.77% against alleged bogus purchases from twelve suspicious entries, which came to Rs. 6,77, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g channels. The assessee was in possession of primary purchases documents and the purchased goods were reflected in the stock register maintained by the assessee. At the same time, the assessee could not conclusively substantiate the delivery of material and failed to produce any of the party to confirm the transactions. Notices issued u/s 133(6) elicited no satisfactory response. All these factors cast a serious doubt on assessee's claim. The Ld. CIT(A), in our opinion, erred in shifting the onus, in this regard, upon Ld. AO since even the primary onus of proving the transactions could not be discharged by the assessee. Therefore, in such a situation, the addition, which could be made, was to account for profit element embedded in these pu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... acs in quantum assessment order passed u/s 143(3) read with Section 147 on 18/03/2013. The assessee has been saddled with peak credit addition of Rs. 4,36,10,802/- (after adjusting peak credit and additional Gross Profit addition of AY 2009-10) against alleged bogus purchases of Rs. 8,16,41,551/-. Another addition of Rs. 44,02,985/- has been made against purchases made by the assessee from an entity namely Mahavir Enterprises since the same remain unsubstantiated. Further, as done in AY 2009-10, Ld. AO enhanced Gross Profit rate against gross alleged bogus purchases from 1.01% to 3.5%, which led to another addition of Rs. 16,24,666/- in the hands of the assessee. The Ld. CIT(A), in similar manner, estimated the additions against alleged / u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... CIT(A) with due application of mind, provided relief to the assessee, we see no infirmity in the action of Ld. first appellate authority in this regard. Therefore, this ground of revenue's appeal stand dismissed. 12. Resultantly, the revenue's appeal stand partly allowed. ITA No.755/Mum/2016, AY 2011-12 13. The facts are similar in AY 2011-12 wherein the assessee has been saddled with peak credit addition of Rs. 54,43,577/- (after adjusting peak credits of earlier years) against alleged bogus purchases. The additional gross profit against these purchases has been estimated at Rs. 1,11,593/-. The Ld. CIT(A), in similar manner, has reduced the additions to Rs. 1,08,870/- and deleted addition of Rs. 1,11,593/ altogether. Since factual matr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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