9911796707
TMI Blog2019 (12) TMI 1636X X X X Extracts X X X X X X X X Extracts X X X X ..... rcent disallowance for bogus purchase cannot be done. The rationale being no sales is possible without actual purchases. This proposition is supported from honourable jurisdictional High Court decision in the case of Nikunj Eximp Enterprises [ 2014 (7) TMI 559 - BOMBAY HIGH COURT ] In this case the honourable High Court has upheld hundred percent allowance for the purchases said to be bogus when s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... side the matter to the file of the assessing officer with the direction to restrict the addition as regards the bogus purchases by bringing the gross profit rate on such bogus purchases at the same rate as that of the other genuine purchases. Assessee s appeal is partly allowed. X X X X Extracts X X X X X X X X Extracts X X X X ..... n account of bogus purchase resulting in disallowance of Rs. 7,19,770/- . 3. Upon assessee's appeal Id CIT A confirmed the same. 4. Against above order assessee is in appeal before the ITAT. We have heard both the counsel and perused the records. Upon careful consideration we find that assessee has provided the documentary evidence for the purchase. Adverse inference has been drawn due to the in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y market gives the assessee savings on account of non-payment of tax and others at the expense of the exchequer. As regards the quantification of the profit element embedded in making of such bogus/unsubstantiated purchases by the assessee, we find that as held by honourable High Court of Bombay in its recent judgement in the case of principle Commissioner of income tax versus M. Haji Adam & Co. ( ..... X X X X Extracts X X X X X X X X Extracts X X X X
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