9911796707
TMI Blog2024 (8) TMI 41X X X X Extracts X X X X X X X X Extracts X X X X ..... - 18 (1) (1), Mumbai (the learned AO) is dismissed. 2. Assessee aggrieved with the same is in appeal before us. 3. Facts of the case shows that assessee is an individual who is a trader, filed his return of income on 23/9/2010 at a total income of Rs. 233,634/-. This return of income was accepted as it is. Subsequently to us found that assessee has obtained the benefit of the accommodation bills from 2 different parties amounting to Rs. 968,724 which are named in Maharashtra sales tax enquiry and in turn informed to the assessing officer by the DJ investigation Mumbai and therefore notice under section 148 of the act was issued on 24/9/2014. The assessee was provided with the reasons recorded. Assessee informed the assessing officer wide ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the appeal on the merits of the case dismissing the appeal of the assessee. 5. Aggrieved, assessee is in appeal before us contesting the issue on the merits of the case that that the assessee has produced the invoices, payments are made through account paychecks, without purchase and sales could not have taken place and the books of accounts of the assessee are audited. In view of this it was stated that hundred percent of such purchases could not have been added to the total income of the assessee the learned authorized representative relied upon several judicial precedents. He further produced the item by stock register maintained by the assessee. 6. The learned departmental representative vehemently submitted that the assessing officer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eness of the purchases cannot be accepted, then the natural course would be to make an addition to the extent of the profit involved in such bogus purchases which is less than the net profit shown from genuine purchases. This is so because the intention of the bogus purchases would be to reduce the profits of the assessee. By this mechanism the profits of the assessee are taxed from tainted purchases to the extent of profit on by the assessee from one tainted purchases. This is also the mandate of the decision of the honourable Bombay High Court in case of Mohammad Haji Adam & co. In view of these facts, we direct the learned assessing officer to tax amount of profit out of the above bogus purchases in accordance with the decision of the ho ..... X X X X Extracts X X X X X X X X Extracts X X X X
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