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TMI Blog2020 (4) TMI 544X X X X Extracts X X X X X X X X Extracts X X X X ..... GUJARAT HIGH COURT] had considered a similar issue and held that at the time of estimation of profit from alleged bogus purchases no uniform yardsticks could be adopted, but it depends upon facts of each case. We are of the considered view that the CIT(A) has taken a fair view and estimated 12.50% gross profit on alleged bogus purchases to settle dispute between the parties and hence, we are inclined to uphold order of the ld. CIT(A) and dismiss appeal filed by the Revenue. - Decided against revenue. - ITA No.6523/Mum/2018 - - - Dated:- 7-2-2020 - Shri Saktijit Dey, Judicial Member And Shri G. Manjunatha, Accountant Member For the Assessee : Shri Paresh Shah. AR For the Revenue : Shri Ashish Kumar, DR ORDER PER ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of ₹ 2,41,126/-. The case has been subsequently reopened u/s 147 of the Act, on the basis of information received from DGIT, investigation, Mumbai, as per which, Sales Tax Authorities of Government of Maharashtra had taken actions against number of Hawala dealers, who had issued bogus purchase bills to various parties in Mumbai and other places. As per list of beneficiaries, the assessee is one of the beneficiary, who had taken accommodation bills of bogus purchases from various parties as listed by the AO in para 2.1 of his assessment order amounting to ₹ 40,36,476/-. The case was selected for scrutiny and the assessment has been completed u/s. 143(3).r.w.s. 147 of the I.T.Act, 1961 on 22/03/2016 and determined total income of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... highlighting the payments made for purchases from the seller parties. It is noticed that on account of non-availability of the suppliers at the given address and non-production of delivery challans, lorry receipts, transportation details, the AO added entire alleged bogus purchases. 5.2 Though, it may be a fact that appellant was not able to produce the concerned parties before the Assessing Officer may be on account of time gap- fact remains that the appellant produced details to prove the genuineness of the purchases. Merely relying upon the information from the Sales Tax Department, the Assessing Officer could not have treated the entire purchases as bogus. The appellant has brought documentary evidences on record to prove genuinene ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s purchases on the ground that the assessee is one of the beneficiary of accommodation entries of bogus purchase bills issued by Hawala dealers. According to the Ld. AO, although assesee has filed certain basic evidences, but failed to file further evidence in the backdrop of clear finding by the Sales Tax Department, Maharashtra that those parties are involved in providing accommodation entries without actual delivery of goods. The Ld. AO had also taken support from the investigation conducted during the course of assessment proceedings, as per which notice issued u/s 133(6) to the parties were returned un-served by the postal authorities. Therefore, he came to the conclusion that purchases from the said parties are bogus in nature. It is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at High Court, in the case of CIT vs Simith P.Sheth 356 ITR 451 had considered a similar issue and held that at the time of estimation of profit from alleged bogus purchases no uniform yardsticks could be adopted, but it depends upon facts of each case. The ITAT, Mumbai, in number of cases had considered an identical issue and depending upon facts of each case, directed the Ld.AO to estimate gross profit of 10% to 15% on total alleged bogus purchases. In this case, considering the nature of business of the assessee the Ld. AO has made 100% additions, whereas the Ld.CIT(A) has scaled down addition to 12.50% gross profit on total alleged bogus purchase. Although, both authorities have taken different rate of profit for estimation of income ..... X X X X Extracts X X X X X X X X Extracts X X X X
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