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TMI Blog2022 (12) TMI 1160X X X X Extracts X X X X X X X X Extracts X X X X ..... s already declared profit @ 9% (confirmed by AO) the net difference of 3.5% (12.5 - 9) should be considered for disallowance. Accordingly, we direct Assessing Officer to disallow @ 3.5% of the alleged bogus purchases. Appeal filed by the assessee is partly allowed. X X X X Extracts X X X X X X X X Extracts X X X X ..... purchases can be disallowed and not the entire purchases. Reliance is placed on the decision of the Hon'ble High Court of Bombay in the case of "the Principal Commissioner of Income Tax-17 Vs. M/s. Mohommad Haji Adam & Co. 2019 (2) TMI 1632". 6. On the facts and circumstances of the case and in law, Ld. CIT(A) erred in confirming the action of the A.O. in treating the loose papers found in the business premises of the appellant firm as cash book for the period 01.03.2011 to 31.03.2011. 7. On the facts and circumstances of the case and in law, Ld. CIT(A) erred in confirming addition of Rs. 2,52,077/- on account of cessation of liability. 8. On the facts and circumstances of the case and in law, Ld. CIT(A) erred in confir ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t pressed by the learned counsel of the assessee before the Ld. CIT(A). But the same issue is agitated before us. This issue is setting aside to the Ld. CIT(A) for further adjudication. The learned counsel of the assessee filed a detailed document and ledger account to substantiate its claim related Ground No.-2 & 2.1. The assessee is directed to submit those details before the Ld. CIT(A) in support of the claim. The assessee should get a reasonable opportunity for redressal of his grievance. Related to disallowance of purchase in ground Nos. 3 & 4, the purchase was made for the financial year 2008-09 and sale was also made in same year. The learned counsel of the assessee submitted catena of judgment. Moreover, no such any specific finding ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oduce the Purchase parties before the undersigned along with various details, Name & Address of Purchaser, VAT number, copy of return of income, Copy of Sales Tax Return, Copy of the Purchase Order, Details of Octroi, Details of mode of transport etc., to prove the genuineness of the creditors/Purchasers appearing in the books of accounts vide Show cause dated 04.03.13, the relevant portion of which is reproduced as under: On perusal of the return of income submitted for AY 2005-06 to AY 2011-12, it was noted that you have furnished the list of Sundry Creditors. Accordingly letters were issued to these Sundry Creditors for furnishing of information u/s. 133(6). However the letters were returned un-served as per the list enclosed herewith. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ra.ka.sh Enterprises 27840097650V 74,61,220 7 Raj Traders 27450262425V 95,80,729 8 M/s Marco Enterprises 1,11,00,355 9 Sivamani Traders 27290589500V 4,50,961 10 Vinayak Trading Co 27160650342V 6,80,446 6.4. The Ld. DR relied on the order of the revenue authorities and prayed for sustaining the addition. 7. We heard the rival submission and relied on the documents available in the record. The purchase was disallowed by the Ld. A.O. @ 91% of the total purchase. The addition was made fully depending on the available documents from the VAT authorities. No cross verification was allowed by the Ld. AO. The VAT authorities are generally examining the payment of VAT. The Sale Tax Department mostly concerned about the input tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e India Private Limited vs. DCIT 14(3)(1), Mumbai 2022 (4) TMI 906-ITAT Mumbai. 8. DCIT, Circle-3(1), P-7, Kolkata vs. M/s. narayani Ispat Pvt. Ltd. 2017 (10) TMI 67-ITAT Kolkata. Accordingly, we are declining the order of the Ld. CIT(A) and directing to delete the addition amount of Rs. 62,32,777/-." In the result, In ITA No. 764/Mum/2022 in ground Nos. 1,3 & 4 are allowed, ground No. 2 & 2.1 are allowed for statistical purposes and ground No. 5 is rejected. Ground No. 6 is general in nature. In ITA No. 765/MUM/2022 in ground No. 1,4,7,8 is not pressed. Ground No. 2 is dismissed. Ground Nos. 3, 5 and 6 are allowed. Ground No. 9 is general in nature. Therefore, the appeals of the assessee are partly allowed." 7. Since the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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