2021 (10) TMI 1323

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..... this would be an issue which requires evidence to be led to determine what would be the actual profit margin in the business that Assessee was carrying on and the matter of calculations by the concerned authority. According to the Tribunal, in all such similar cases, it is ranged between 5% to 12.5% as reasonable estimation of profit element embedded in the bogus purchase when material consumptio .....

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..... y Respondent and cross-Appeal filed by Appellant and is proposing the following substantial questions of law : A. Whether on the facts and in circumstances of the case and in law, the Hon'ble ITAT erred in not relying on the information received from the Investigation Wing, Mumbai and Sales Tax Department, Govt. of Maharashtra that purchases shown by the assessee are from the bogus bil .....

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..... ssessee had made cash purchases from undisclosed parties and arranged the bills from parties, who were hawala operators. 2. Mr. Sharma submitted that procuring bogus bills does not itself represent any business transaction and the purpose of booking the expenditure and the account through bogus bills is an illegal activity and the same is definitely an offence under, and in any case prohib .....

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..... s a finding of fact and therefore there cannot be an offence as provided in the Explanation to Section 37. 3. Mr. Sharma also submits that under Section 40A(3) if the assessee incurs any expenditure in respect of which a payment or aggregate of payment made to a person in a day by cash exceeds a particular amount, no deduction shall be allowed in respect of such expenditure. Mr. Sharma state .....

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..... d authority. According to the Tribunal, in all such similar cases, it is ranged between 5% to 12.5% as reasonable estimation of profit element embedded in the bogus purchase when material consumption factor do not show abnormal deviation. 5. Whether the purchases were bogus or whether the parties from whom such purchases were allegedly made were bogus was essentially a question of fact. When .....

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