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TMI Blog2020 (9) TMI 913X X X X Extracts X X X X X X X X Extracts X X X X ..... und the genuineness of the purchases and also the fact that the assessee had sought adjournment before the Ld. CIT(A) on 05.11.2018 and 10.01.2019, whereas the assessee failed to appear before him on the final opportunity given by the Ld. CIT(A) on 17.01.2019, we are of the considered view that the assessee may be given another opportunity by the first appellate authority before deciding the appeal on merit. Therefore, we set aside the order of the Ld. CIT(A) and restore the matter back to him to decide the case on merit - Decided in favour of assessee for statistical purposes. - ITA No. 3174/MUM/2019 (Assessment Year: 2009-10) - - - Dated:- 10-9-2020 - SHRI SAKTIJIT DEY (JUDICIAL MEMBER) AND SHRI N.K. PRADHAN (ACCOUNTANT MEMBER) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... purchases by the Appellant during the previous year, totalling of ₹ 18,77,948/- are unsubstantiated as have to be considered as bogus purchases . 5. Without prejudice to the above, the learned CIT(A) erred in bringing to tax the entire amount of purchase of ₹ 18,77,948/- instead of the profit element embedded in the purchases. 3. Briefly stated, the facts of the case are that the assessee filed its return of income for the AY 2009-10 on 22.09.2009 declaring total income at ₹ 1,78,31,591/-. During the course assessment proceedings, the Assessing Officer (AO) observed that the assessee has obtained accommodation entries by bogus purchase bills amounting to ₹ 18,77,948/-. The AO received the above informat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the raw material, the climatic conditions, the variations in the specifications of the output products etc. In the appellant's case, the goods purchased through alleged bogus suppliers are used for execution of contracts. Considering the same, there can be no standard or acceptable norms for the consumption of raw material or components for the contract executed by the appellant. The appellant has also not furnished any such standard consumption rates of the raw materials for different types of contracts executed by it. 6.1.8 Under such facts and circumstances, it is not possible to verify the extent of consumption of various raw materials required for execution of contracts undertaken by the appellant. In view of this, merely ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tatives. 6. As there is no compliance by the assessee to the notice of hearing issued by the Registry, we proceed to decide the case on the basis of materials available on record. A perusal of the order of the Ld. CIT(A) shows that the assessee had sought adjournment on 05.11.2018 and 10.01.2019. A final opportunity was given by the CIT(A) to the assessee on 17.01.2019. As the assessee failed to appear before him, the Ld. CIT(A) proceeded to decide the case on merits. Thereby, he confirmed the addition of ₹ 18,77,948/- made by the AO. Let us discuss the backgrounds details. As mentioned earlier, the AO made an addition of ₹ 18,77,948/- on the basis of information received from the Sales Tax Department, Govt of Mahara ..... X X X X Extracts X X X X X X X X Extracts X X X X
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