9911796707
TMI Blog2019 (1) TMI 585X X X X Extracts X X X X X X X X Extracts X X X X ..... rom the standard 12.5% being directed to be disallowed on account of bogus purchase. This is to exclude double jeopardy to the assessee - Decided partly in favour of assessee. - ITA No.1113/Mum/2018 - - - Dated:- 7-12-2018 - Shri Shamim Yahya, AM And Shri Pawan Singh, JM For the Appellant : Shri Shreya Doshi And Shri D. R. Shah For the Respondent : Shri S. K. Bepari ORDER PER SHAMIM YAHYA, A. M.: This is an appeal by the assessee wherein the assessee has raised many grounds have but basically the assessee is aggrieved that the learned Commissioner of Income Tax (Appeals)-25, Mumbai ( ld.CIT(A) for short) vide order dated 112.01.2018 has erred in sustaining 12.5% disallowance on account of bogus purchase, resulti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee had taken accommodation bills for purchases from the parties declared as hawala operators by Maharashtra Sales Tax Department. During the course of reassessment proceedings the AO found that the assessee had made purchases from various parties out of which ₹ 11,00,457/- effected from the parties as mentioned below: Sr. No. Party who have issued bogus bills to the assessee Amount of such bogus bill (Rs.) 1 Shubham Enterprises 2,65,228 2 Om Enterprises 1,60,482 3 Suyash Sales Corporation 6,74,747 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al inquiry conducted by an Income Tax Inspector deputed by the AO also failed to throw any light on the where about of the said party. Thereafter, the AO brought this fact to the notice of the assessee during the course of assessment proceedings and the assessee was asked to produce the party for verification and also show cause as to why the purchases made from the aforesaid parties should not be disallowed. In response to the AO's above query, the AR of the assessee made written submissions wherein it was submitted that the purchases shown by the assessee from the said parties are genuine purchases and payments to these parties were also made through account payee cheque. Further, the assessee also expressed his inability to produce t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed the complete documentary evidence for the purchase inasmuch as the evidence in the form of transportation bills are not on record. The notices issued to the said suppliers have returned unserved. The local enquiry by the I. T. Inspector has also reported non existence of parties. Hence, the veracity of the purchase evidence given is clearly unproved. 12. However, we find that in this case the sales have not been doubted. It is settled law that when sales are not doubted, 100% disallowance for bogus purchase cannot be done. The rationale being no sales is possible without actual purchases. This proposition is supported from Hon'ble jurisdictional High Court decision in the case of Nikunj Eximp Enterprises (in writ petition no 28 ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
