2017 (12) TMI 1797

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..... ent of tax and others at the expense of the exchequer. In such situation, in my considered opinion, on the facts and in circumstances of the case, 12.5% disallowance out of the bogus purchases meets the end of justice. This proposition draws support from the Hon ble Gujarat High Court decision in the case of CIT vs Simit P. Sheth [ 2013 (10) TMI 1028 - GUJARAT HIGH COURT ] . Accordingly, direct that disallowance be limited to 12.5% of bogus purchase. Appeal filed by the assessee stands partly allowed.
SHRI SHAMIM YAHYA, ACCOUNTANT MEMBER For the Appellant : Shri Naveen Kumar For the Respondent : Ms. N. Hemalatha ORDER Per Shamim Yahya, A. M.: This appeal by the assessee is directed against order of ld. Commissioner of Income Tax (Ap .....

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..... Total 60,61,815/- Holding the above to be bogus purchase, the Assessing Officer made addition of ₹ 28,47,360/- being the peak credit involved. 4. Against the above order, the assessee appealed before the ld. Commissioner of Income Tax (Appeals). The ld. Commissioner of Income Tax (Appeals) confirmed the action of the assessing officer. 5. Against the above order of ld. Commissioner of Income Tax (Appeals), the assessee is in appeal before the ITAT. 6. I have heard both the counsel and perused the records. I find that credible and cogent information was received in this case by the assessing officer that certain accommodation entry provider/bogus suppliers were being used by certain parties to obtained bogus bills. The assessee .....

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..... existent/bogus parties cannot be taken as cogent evidence of purchases. In light of the overwhelming evidence, the Revenue authorities cannot put upon blinkers and accept these purchases as genuine. This proposition is duly supported by Hon'ble Apex Court decision in the case of Sumati Dayal vs. CIT [1995] 214 ITR 801 (SC) and CIT vs. Durga Prasad More [1971] 82 ITR 540 (SC). In the present case, the assessee wants that the unassailable fact that the suppliers are non-existent and, thus, bogus should be ignored and only the documents being produced should be considered. This proposition is totally unsustainable in light of Hon'ble Apex Court decisions. 8. However, I find that in this case, the sales have not been doubted, it is settled law .....

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