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TMI Blog2020 (7) TMI 600X X X X Extracts X X X X X X X X Extracts X X X X ..... nt evidence in the form of ledger accounts and payment through banking channel, the AO ny adverse material against the assessee. CIT(A) has brought the element avoidance of VAT and other charges to tax, embedded in such bogus purchases. Considering the peculiar facts of the present case, we do not find any infirmity in the order passed by ld CIT(A),which we affirmed. - Decided against revenue. - ITA No.2693/Mum/2019 - - - Dated:- 21-7-2020 - Shri Pawan Singh, Judicial Member And Shri M. Balaganesh, Accountant Member For the Assessee : Shri Prashant Shah (DR) For the Revenue : Miss Samatha ( Sr. DR) ORDER UNDER SECTION 254(1)OF INCOME TAX ACT PER PAWAN SINGH, JUDICIAL MEMBER; 1. This appeal by revenue is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sued show-cause notice why the purchases shown from hawala traders should not be treated as bogus and to bring to tax. The assessee filed its reply dated 23.02.2016. The reply of assessee was not accepted by Assessing Officer (the contents of reply are not recorded in the assessment order). The Assessing Officer on the basis of on the basis of various decisions of Higher Courts as mentioned in paragraph-9 of the assessment order, took his view that the assessee has shown purchases from the undisclosed supplier. The Assessing Officer disallowed the entire purchases of ₹ 4,00,878/- in assessment order passed under section 143(3) r.w.s. 147 on 10.03.2016. 3. On appeal before the ld. CIT(A), the addition was restricted to 12.5% of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to its customer. The assessee is regularly purchasing the similar Diaries in earlier year s i.e in Financial Year (FY) 2008-09 2010-11 and in subsequent F Y 2011-12. The Diaries were purchased for increasing the market share and business relationship with customers. The assessee produced the bills, sample Diary, Ledger Account with bank statement highlighting the payment made to the parties. The ld. AR of the assessee further submits that original assessment was completed under section 143(3) only on satisfaction of the Assessing Officer. The re-opening was based merely on the information of DGIT(Inv.), without arriving at own satisfaction, was merely a change of opinion. The Assessing Officer has not discussed the documentary evidences ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ified and examined the fact that the diaries were distributed on not. The ld. CIT(A) after considering the contention of assessee restricted the addition to the extent of 12.5% of the alleged bogus purchases by following the decision of Hon ble Gujarat High Court in CIT vs. Simith P. Sheth (supra). We have noted that despite furnishing sufficient evidence in the form of ledger accounts and payment through banking channel, the Assessing Officer has not brought any adverse material against the assessee. In our the ld CIT(A) has brought the element avoidance of VAT and other charges to tax, embedded in such bogus purchases. Considering the peculiar facts of the present case, we do not find any infirmity in the order passed by ld CIT(A),which w ..... X X X X Extracts X X X X X X X X Extracts X X X X
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