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TMI Blog2023 (7) TMI 1040X X X X Extracts X X X X X X X X Extracts X X X X ..... e deem it appropriate to restrict G.P on bogus purchases to 7.5% over and above the G.P already declared by the assessee. While quantifying bogus purchases the cost of fixed asset (machinery) purchased during the year has been included in bogus purchases - Assessee has already disclosed machinery in the block of assets and has claimed depreciation thereon. AO is directed to reduce the cost of machinery from the bogus purchases - the impugned order is modified to the extent mentioned herein above. The ground No.1 to 3 of the appeal are partly allowed. - ITA NO. 978/MUM/2023 - - - Dated:- 23-6-2023 - Shri Vikas Awasthy, Judicial Member And Shri Gagan Goyal, Accountant Member For the Appellant : Shri D.C.Saboo For the Respon ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ated addition of 12.5% on alleged bogus purchases. Thus, the Assessing Officer made addition of Rs. 25,23,995/- u/s. 69C of the Act. Aggrieved against assessment order dated 18/02/2016 passed u/s. 143(3) r.w.s. 147 of the Act, the assessee filed appeal before the CIT(A). The notices of hearing of appeal were served on the Chartered Accountant of the assessee i.e. Shri Ketan Navalchand Shah. On account of ill-health he could not appear before the CIT(A), the CIT(A) dismissed the appeal of assessee in an ex-parte proceedings and confirmed the addition made in the assessment order. The ld. Authorized Representative of the assessee pointed that Shri Ketan Navalchand Shah, Chartered Accountant has furnished an affidavit along with medical certif ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gned order and prayed for dismissing the appeal of assessee. The ld. Departmental Representative submits that the assessee has failed to discharge its onus in proving genuineness of the purchases and the dealers. Notices issued u/s. 133(6) to the dealers were returned back unserved, hence, the Assessing Officer has rightly made addition of 12.5% in respect of bogus purchases. The estimation of additional G.P on bogus purchases is fair and reasonable. The assessee failed to appear before the CIT(A) despite service of notice. 5. Both sides heard and orders of authorities below examined. A perusal of the assessment order reveals that the assessee has failed to discharge its onus in proving genuineness of the purchases and authenticity of pa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t while quantifying bogus purchases the cost of fixed asset (machinery) purchased during the year has been included in bogus purchases. The assessee has already disclosed machinery in the block of assets and has claimed depreciation thereon. The Assessing Officer is directed to reduce the cost of machinery i.e. 1,94,832/- from the bogus purchases i.e. Rs. 2,01,91,960/-. Thus, the impugned order is modified to the extent mentioned herein above. The ground No.1 to 3 of the appeal are partly allowed. 7. No submissions were made in respect of ground No.4 and 5, hence, the same are dismissed. 8. In ground No.6 of appeal, the assessee has assailed charging of interest u/s. 234A, 234B and 234C of the Act . Charging of interest under aforesai ..... X X X X Extracts X X X X X X X X Extracts X X X X
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