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TMI Blog2018 (10) TMI 1292X X X X Extracts X X X X X X X X Extracts X X X X ..... ation relating to reopening remains un-assailed. In such factual scenario, AO has made the necessary enquiry. The issue of notice to the party has returned unserved. Assessee has not been able to provide any confirmation from any of the party. Assessee has also not been able to produce any of the party. Necessary evidence relating to transportation of the goods was also not on record. In this factual scenario, it is amply clear that the assessee has obtained bogus purchase bills. Mere preparation of documents for purchases cannot controvert overwhelming evidence that the provider of these bills is bogus and non-existent. The Sales Tax Department in its enquiry has found the parties to be providing bogus accommodation entries. The assessing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) has been taken as lead year. The Return of Income in this case was filed on 27.09.2009 declaring total income of ₹ 8,15,510/-. Subsequently, the A.O. received information from Sales Tax Department and also from the office of DGIT (Inv), Mumbai that the appellant is a beneficiary of accommodation Bills of purchases from certain bogus Hawala Dealers. As per the information, the concerned Hawala Dealers had not sold any goods, but it had given accommodation entries of sales to the appellant. As per the assessment order, the details of the bogus purchases from the supplier as claimed by the assessee is as under: Sr. No TIN No. Name of the entity PAN Amount (Rs.) 1. 27640405056V Laxmi Sales Corporation ACCPC8910H 79,560 2. 27 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f such purchases was disallowed. 6. Against the above order assessee appealed before the ld. CIT(A). The ld. CIT(A) restricted the addition of 12.5% of the bogus purchase. 7. Against the above order of the ld. CIT(A), the assessee is in appeal before the ITAT. 8. I have heard the ld. Departmental Representative (ld. DR for short). A request for adjournment was moved on behalf of the assessee. The same is rejected as the issue of bogus purchase has already been dealt with in a catena of cases. 9. I find that credible and cogent information was received in this case by the assessing officer that certain accommodation entry provider/bogus suppliers were being used by certain parties to obtained bogus bills. The assessee was found to have t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ot be taken as cogent evidence of purchases. In light of the overwhelming evidence, the Revenue authorities cannot put upon blinkers and accept these purchases as genuine. This proposition is duly supported by Hon'ble Apex Court decision in the case of Sumati Dayal vs. CIT [1995] 214 ITR 801 (SC) and CIT vs. Durga Prasad More [1971] 82 ITR 540 (SC). In the present case, the assessee wants that the unassailable fact that the suppliers are non-existent and, thus, bogus should be ignored and only the documents being produced should be considered. This proposition is totally unsustainable in light of Hon'ble Apex Court decisions. 11. I further find that Hon'ble jurisdictional High Court in the case of Nikunj Eximp Enterprises (in Writ peti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ncome Tax, Special Leave to Appeal (C) No.8956/2015 decided on 06.04.2015 whereby the Supreme Court has dismissed the SLP confirmed the order dated 09.12.2014 passed by the Gujarat High Court and other decisions of the High Court of Gujarat in the case of Sanjay Oilcake Industries Vs. Commissioner of Income Tax (2009) 316 ITR 274 (Guj) and N.K. Industries Ltd. Vs. Dy. C.I.T., Tax Appeal No.240/2003 decided on 20.06.2016, the parties are bound by the principle of law pronounced in the aforesaid three judgments. 14. However, I note that this is not an appeal by the Revenue. Hence, it will not be appropriate to consider and take away the relief already granted by the Assessing Officer and ld. Commissioner of Income Tax (Appeals) to the assess ..... X X X X Extracts X X X X X X X X Extracts X X X X
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