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TMI Blog2024 (8) TMI 41X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 Mohammad Haji Adam Co. [ 2019 (2) TMI 1632 - BOMBAY HIGH COURT ] Thus, we direct AO to tax amount of profit out of the above bogus purchases. The assessee is directed to furnish such information within 90 days from the date of this order to the learned assessing officer, the learned AO after examination, may confirm the addition to the extent of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urn in response to notice under section 148 of the act has been filed on 23/9/2010. Subsequently statutory notice under section 143 (2) was served upon the assessee on 28/4/2014. The assessee was asked to justify the genuineness of the purchases. Assessee filed 20 meant any information to the learned assessing officer and therefore the learned assessing officer made an addition of ₹ 968,724/ under section 69C of the income tax act by passing an assessment order under section 147 read with section 144 of the income tax act on 3/3/2016 determining total income of the assessee at ₹ 1,202,358/ . 4. Aggrieved, assessee preferred an appeal before the learned CIT A. The learned CIT A noted that the order under section 143 (3) of the ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... details and further the assessee did not appear before the learned CIT A therefore all these evidences cannot be considered year. Even otherwise it was submitted that the addition made by the learned lower authorities are correct because assessee has failed to prove the genuineness of the purchases. 7. We have carefully considered the rival contention and perused the orders of the learned lower authorities. The issue here is that the assessee is found to have been the beneficiary of the bogus purchases from 2 traders wherefrom it was found that assessee has purchased invoices but has not purchased the goods and therefore the learned assessing officer on enquiry as assessee failed to produce enough evidences, made an addition to the extent o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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