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TMI Blog2020 (5) TMI 508X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee requested for adjournment and adjournment was granted with observation "Last opportunity" and appeal was adjourned for hearing on today i.e. on 05/02/2020. However, neither any body appeared on behalf of the assessee nor any adjournment was filed, therefore, the Bench decided to dispose off the appeal after considering the material placed on record. 3. I have gone through the orders of the authorities below and found that the A.O. has reopened the assessment on getting information regarding assessee taking accommodation purchase bills. The A.O. made enquiry and found that the assessee has taken purchase bills without delivery of goods. Accordingly, he added 12.5% of such alleged purchases in assessee's income. By the impugned ord ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s cash is withdrawn on the same day or immediately the reafter. 6.8 It is further pertinent to note that the veracity Of the transactions through banking channels, is not a Sine-qua-non to prove that the transaction must indeed be beyond the shadow of doubt and also that there cannot be any infirmity with the same. Judicial decisions have also taken note of this aspect and started recognizing that modern instruments of tax evasion are ingenious enough to shape them in such a manner that on the surface, they appear genuine enough. The above is supported by the following case laws i.e.:- 1. CIT Vs. Jansampark Advt. Del. Court/ITA No.525/2014. Ratio "The fact that transactions are through banking channel, it does not necessarily follow ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t from the above parties is not established. Hence the purchases per se by the appellant could not be doubted in their entirety as sales have not been doubted by the A.O. 6.11 Further, it is noted that the fact remains that the AO has not rejected the books of accounts of the appellant nor it is his case that cash was withdrawn from the bank account of the suppliers immediately after the cheques were deposited nor he has brought on record any other material to strengthen his case that the purchases are bogus. However, at the same time it cannot be denied that the above various parties from whom bogus bills are taken have indeed been declared as a hawala parties by the sales tan/VAT Department, since, the Hawala parties in question have be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Vs CIT 58 MD 428 (Ahd). On appeal by the department filed in the case of Bholamath Poly Fab Pvt. Ltd, the Hon'ble High Court dismissed the appeal and concurred with the findings of Hon'ble Tribunal that not entire purchase price but profit element embedded in such purchases would be liable to tax. Viewed from the above angle it is amply evident that the decision of the AO stands up to the test. 6.13 It is the say of the ld.AR that the impugned addition has been made solely on the basis of suspicion on the part of the AO and also that suspicion, howsoever strong cannot be the basis of the assessment. Several case laws also are relied upon by AR for this proposition. In the appellant's case, by no stretch of the imagination can it ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arable instances have not been given by the AO. This is rather a fallacious argument because each assessment in a particular case stands on its own pedestal, given the peculiar facts of the case. Rather than comparable case what has to be seen is whether the AO arrived at a legally tenable decision based on the case before him while framing the assessment. This is indeed the case here. 6.16 It is further argued that no opportunity of cross examination is afforded to the appellant and also that the sole reliance on Sales Tax/VAT is not correct. In this regard, it is observed that the opportunity of cross examination may not be sacrosanct and fatal to the assessment as held by Hon'ble Bombay High Court in GTC INDUSTRIES LTD Vs ACIT (1998) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... facts of the case cited by the AR to the facts of the present case. In this sense, each case is undisputedly unique and stands on different pedestal. 6.20 Further, it would be very much germane to note that in various decisions, the Hon'ble ITAT, Mumbai has held that in such cases which are essentially of trading, estimation of 12.5% profit as having been embedded in the bogus purchase transaction was held to be a fair and just outcome. Some of these decisions are quoted below:- a) Meru impex Ex in ITA No.2660/Mum./2017. b) MP Recycling Co. in ITA No.6858/mum./2016. c) Y.A Mamaji Furnishing & Co. in ITAs 4756,4757 & 4758/Mum/2014 d) Manish M Shah in ITA 2975/Mum/2015 6.21 In the ultimate analysis, based on the above elaborate d ..... X X X X Extracts X X X X X X X X Extracts X X X X
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