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TMI Blog2022 (9) TMI 706X X X X Extracts X X X X X X X X Extracts X X X X ..... igh Court in PCIT vs Paramshakti Distributors Ltd. [ 2019 (7) TMI 838 - BOMBAY HIGH COURT] . Apart from the ledger account of M/s Sai International Impex in books of assessee, no other evidence is brought on record to support the assessee s claim that purchases were only to an extent from the said entity and accordingly, plea of the assessee is rejected in this regard. Therefore, we direct the AO to restrict the addition to 12.5% of alleged bogus purchases. As a result, the sole ground raised in present appeal is partly allowed. Addition on account of insurance payment on the policy of the Directors - CIT(A) held that such payment is the personal liability of the Director and therefore, cannot be said to have been incurred wholly and exclusively for the purpose of the construction business of the assessee and thus not allowable under section 37(1) - HELD THAT:- - Considering the material available on record, we find no infirmity in the impugned order passed by the CIT(A) on this issue. As a result, ground no.2, raised in assessee s appeal, is dismissed. - ITA No.1345/Mum./2020 And ITA No.1344/Mum./2020 - - - Dated:- 12-9-2022 - Shri S. Rifaur Rahman, Accountant Member And ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lication seeking condonation of delay. Having perused the application, which is also supported by an affidavit, we are of the considered view that there exist sufficient cause for not filing the present appeals within the limitation period and therefore we condone the delay in filing the appeals by the assessee and we proceed to decide the appeals on merits. ITA no.1345/Mum./2020 Assessee s Appeal A.Y. 2010 11 4. In its appeal, the assessee has raised following grounds: 1. On the facts and circumstances of the Appellant's case and in law the Learned Assessing Officer erred in making an addition Rs.94,02,069/- on account of Unproved purchases as per Para 6 of the impugned assessment order. 5. The only grievance of the assessee in this appeal is against the addition made by the Assessing Officer ( AO ) on account of purchases by way of bogus bills. 6. The brief facts of the case pertaining to this issue, as emanating from the record, are: The assessee is a private limited company engaged in the business of development and construction of residential units. For the year under consideration, the original return of income was e-filed by the assessee o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ugned purchases have been made through brokers therefore it is not possible to get the current details of the supplier. The learned AR also referred to the copies of the invoices and delivery challans forming part of the paper book. The learned AR further submitted that the correct total purchase from M/s Sai International Impex is only Rs. 62,15,132. Learned AR also submitted that the assessee is having declared loss of Rs. 2,03,05,370 and thus there is no benefit in claiming expenditure to an extent of Rs. 62,15,132 by seeking bogus bills. 9. On the other hand, learned DR submitted that the assessee has not produced any stock book, inward/output register, proof with regard to storage of the material purchased, transport details like lorry receipts etc. in support of purchases claimed by the assessee as genuine. 10. We have considered the rival submissions and perused the material available on record. We have also considered the case laws relied upon by both the sides. In the present case, on the basis of the information received from the Investigation Wing, Mumbai that assessee is the beneficiary of bogus purchases from an entity viz. M/s Sai International Impex, reassessme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... idence regarding actual utilisation of the material mentioned in the bogus bill and has also failed to adduce details regarding work in progress or stock. From page No. 55 and 55A, we find the details of work in progress for the year under consideration. Further as noted above, the company will be restarting its construction activity after lifting of stop work notice by the Slum Rehabilitation Authority, therefore, in such a situation we are of the considered view that actual utilisation of the construction material cannot be available with the assessee and the company can only have the details of inventory ready to be used. It is evident that the AO has not raised any doubt regarding the above claim of the assessee. Further, it cannot be doubted that without the purchase of construction material the construction activity as claimed to be restarted by the assessee cannot be carried out. Therefore, it appears to be a case of bogus bills arranged from aforesaid entity and construction material purchase from somewhere else at low cost. Thus, we are of the considered view that the entire bogus purchases cannot be added in such a suggestion. Considering the business activities of the as ..... 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