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TMI Blog2023 (6) TMI 565X X X X Extracts X X X X X X X X Extracts X X X X ..... by providing margin of grey market - AO/CIT(A) instead of treating the entire impugned purchases as bogus and adding the same to the income of the assessee restricted the addition to 25% of such purchases following the decision in Vijay Protein Ltd [ 2015 (1) TMI 828 - GUJARAT HIGH COURT] and Sanjay Oil Cake Industries [ 2008 (3) TMI 323 - GUJARAT HIGH COURT] The above findings remain uncontroverted before us. No infirmity in the order of the Ld. CIT(A) and sustain the same. Assessee appeal dismissed. - ITA No. 9702/Del/2019 - - - Dated:- 18-5-2023 - SHRI ANIL CHATURVEDI, ACCOUNTANT MEMBER AND MS. ASTHA CHANDRA, JUDICIAL MEMBER Assessee by: None Department by : Shri Amit Shukla, Sr. DR ORDER PER ASTHA CHANDRA, JM The appeal filed by the assessee is directed against the order of the Ld. Commissioner of Income Tax (Appeals)-17, New Delhi ( CIT(A) ) dated 21.10.2019 pertaining to the Assessment Year ( AY ) 2010-11. 2. The grounds raised by the assessee are as under:- 1. That on facts and in circumstances of the case and in law, Ld. CIT (A) has erred in confirming the order passed u/s. 143(3)/147 by the Ld. 2. That the Ld. CIT(A) ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Name of Bill Provider A.Y. Nature of Transaction Beneficiary name Total value of transaction 1. KRIYA (PAN: AADCK1926B) 2010-11 Sale Parmeshwar Exports. 96,18,783 2. AVI (PAN: ABIPJ5587A) 20 10- 11 Sale Parmeshwar Exports 41,32,479 3. SUN (PAN: ABAFS0852K) 20 l0-11 Sale Parmeshwar Exports 88,80,360 4. KALASH (PAN: AFRPJ9962J) 20 l0-11 Sale Parmeshwar Exports 69,80,161 5. KARNAWAT (PAN: AADCK1927A) 2010-11 Sale Parmeshwar Exports 45,97,941 Total 3,42,09,724 4. In response to notice under section 148 of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4.3 of his order There is no merit in the contention of the appellant. It is observed that AO has recorded detailed reasons and he has pursued and examined the information received from DCIT, Central. Circle 4, Surat. The AO has also examined the ITR of the appellant and it is found that amount of purchases reflected in the ITR does not commensurate with the information received. Therefore, AO has reason to believe that income has escaped assessment and there is failure on the part of the appellant to disclose fully and truly all material fact necessary for his assessment for A.Y. 2010-11. Hence, AO has issued notice u/s 148 after taking necessary approval u/s 151(1) of the Act. In the case of the appellant AO has initiated reassessment proceeding after proper analysis of the information alongwith ITR of the appellant and there is failure on the part of the appellant to disclose fully and truly all material fact necessary for assessment. Thus, AO is justified in initiating reassessment proceedings, in the case of the appellant and the case laws on which appellant has placed reliance facts are distinguishable. 10. The Ld. CIT(A) recorded his findings on the issue of im ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... concern of the assessee. However, in the present case there is no such finding similar to that judgment. Further, assessee has already recorded the sales of the goods allegedly purchased from these bogus parties. Further, the Id CIT(A) has categorically stated at page No. 39 of his order under the heading actual transaction that goods have actually been purchased from grey market by cash payment from the cash generated outside the books of account and on quantitative details shown by the assessee, it has to be reasonably presumed that assessee purchased material from market in cash and bills were obtained from the above two bogus concerns of the accommodation entry provider. Therefore, it is apparent that the addition of whole of the amount cannot be made. Therefore, in view of the decision of ' the Hon'ble Supreme Court and Hon'ble High Court cited by the Id DR. we direct the Id Assessing Officer to restrict the addition @25% of the total purchases of Rs. 5247565/- from these tainted parties. Accordingly, the addition is restricted to Rs. 1311891/- and balance addition of Rs. 3935673/- is deleted. In the result ground No. 4 to 7 are partly allowed. . 5.5 A per ..... X X X X Extracts X X X X X X X X Extracts X X X X
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