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TMI Blog2022 (6) TMI 665X X X X Extracts X X X X X X X X Extracts X X X X ..... eal has been filed by the assessee against the order of Ld.CIT(A) dated 05/10/2018 for A.Y. 2011-12. 2. The substantial issue that has been challenged in this appeal is the reopening of the assessment under section 147 and the addition of Rs.22,00,556/- on account of possible profit element at 12.5% on account of bogus purchases made as per information from sales-tax department and other ancillar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l beyond the due date is genuine and convincing. Therefore, we condone the delay in filing the appeal and appeal is admitted for adjudication. 6. The brief facts of the case are that the assessee is a partnership firm engaged in the business of trading in non ferrous metal and its allied items. The assessee filed its return of income for the impugned assessment year on 25/09/2011 declaring total ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ieved by this, the assessee was in appeal before the Ld.CIT(A), who confirmed the addition made by the Assessing Officer and dismissed the appeal of the assessee. 7. The assessee is in appeal before us challenging the order of the Ld.CIT(A). The Ld.AR stated that it was only the profit on account of bogus purchases that shall be taxed and not the entire purchases in itself and relied on the princ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and had ruled that when sales are not in doubt, then 100% disallowance for bogus purchases cannot be made and relied on Hon'ble jurisdictional High Court in Nikunj Eximp Enterprises Pvt Ltd 372 ITR 619 (Bom) and Principal Commissioner of Income-tax vs M. Haji Adam & Co Income Tax Appeal No.1004 of 2016 dated 11/2/2019. We find it essential to cull out the relevant extract from the said order for r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o the assessee to present its case. Further, we hold that levy of interest under section 234B and 234C are consequential and initiation of penalty under section 271(1(c) is premature. 10. Since we have decided the appeal on merits, the legal ground regarding reopening of the assessment is not adjudicated upon. 11. In the result, the appeal filed by the assessee is partly allowed. Order pronounc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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