2020 (1) TMI 1649

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..... d, hundred percent disallowance for bogus purchase cannot be done. The rationale being no sales is possible without actual purchases. As decided in Nikunj Eximp Enterprises [ 2014 (7) TMI 559 - BOMBAY HIGH COURT] upheld hundred percent allowances for the purchases said to be bogus when sales are not doubted. However the facts of the present case indicate that assessee has made purchase from th .....

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..... der dated 27.04.2018 pertaining to Assessment Year 2010-11. 2. The assessee in this case is engaged into manufacturing business. 3. The assessment was reopened upon information from sales tax department that assessee has made purchases from bogus dealers. The assessing officer in this case has made hundred percent additions on account of bogus purchase amounting to Rs. 14,63,054/-. 4. Upo .....

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..... e High Court has upheld hundred percent allowances for the purchases said to be bogus when sales are not doubted. However the facts of the present case indicate that assessee has made purchase from the grey market. Making purchases through the grey market gives the assessee savings on account of non-payment of tax and others at the expense of the exchequer. In such situation in our considered opin .....

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