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TMI Blog2022 (9) TMI 1324X X X X Extracts X X X X X X X X Extracts X X X X ..... nd therefore, sustained the addition by estimating 5% of alleged bogus proceedings i.e. 5% by the assessee for the year under consideration. - HONOURABLE MR. JUSTICE N.V.ANJARIA AND HONOURABLE MR. JUSTICE BHARGAV D. KARIA MR BHATT SENIOR ADVOCATE WITH MR KARAN SANGHANI WITH MR MUNJAAL BHATT FOR M R BHATT CO. FOR THE APPELLANT ORDER PER : HONOURABLE MR. JUSTICE BHARGAV D. KARIA The present appeal under section 260A of the Income Tax Act, 1961 is directed against the judgment and order dated 17.11.2021 of the Income Tax Appellate Tribunal, Ahmedabad delivered in common ITA No. 1798 of 2019 to ITA No. 1800 of 2019, in so far as the said common judgment relates to ITA No. 1800 of 2019 for the assessment year 2010-1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the bogus purchases made by the assessee on the basis of the information received from Maharashtra Sales Tax Authority and passed the assessment order under section 144 read with section 147 of the Act. 3.2 The assessee being aggrieved preferred appeal before CIT(Appeals) and submitted the explanation that the assessment was reopened on the basis of borrowed satisfaction from the information of Maharashtra Sales Tax Authority and except general information nothing was before the Assessing Officer for making the addition. The assessee also submitted that the accounts of the assessee were audited under section 44AB of the Act, quantitative details were maintained and the alleged bogus biller have valid sales tax numbers and goods purchase ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er. It appears from the record that no internal inquiry has been carried out by the Revenue to vouch the fact of bogus purchases. The ld.CIT(A) has recorded that the appellant has submitted documentary evidence to establish the genuineness of purchase made from the parties, but the factum of the said billings parties being engaged in the bogus bills was not ruled out. Accordingly, after examining all the facts and circumstances and also relying upon decision on the ITAT, Mumbai Benches cited (supra) on similar issue, he restricted the impugned addition and estimated the same at 10% of alleged bogus purchases i.e. Rs.14,91,767/-. We do not find any infirmity in the approach of the ld.CIT(A) in restricting the impugned additions, and therefor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gaged in bogus billing and therefore, for the year under consideration has made addition by estimating 5% of the alleged bogus purchases i.e. 5% of Rs.15,38,784/- in the total facts and circumstances which emerged before it by way of material on record. 5.2 In the decision in the case of N. K. Industries Limited (Supra) sought to be relied upon would hardly come to the rescue of the appellant department since therein the material was available during the course of search which exposed the falsity of entries made in the regular books of account. The unexplained expenditure that is bogus purchases were on the basis of the fictitious invoices debited in the trading account. The Tribunal made 25% of the total purchase on the ground that th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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