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TMI Blog2024 (9) TMI 645X X X X Extracts X X X X X X X X Extracts X X X X ..... n to 5% of the non-genuine purchases. Therefore, we deem it appropriate to restrict the disallowance to 5% of the disputed purchases. We find that the same is also in line with the judgment of Paramshakti Distributors Ltd. [ 2019 (7) TMI 838 - BOMBAY HIGH COURT] . Accordingly, ground no.2 raised in assessee s appeal is partly allowed. - Ms. Padmavathy S, Accountant Member And Shri Sandeep Singh Karhail, Judicial Member For the Assessee : Shri Rajkumar Singh For the Revenue : Shri Surendra Meena, Sr. DR ORDER PER SANDEEP SINGH KARHAIL, J.M. 1. The present appeal has been filed by the assessee challenging the impugned orders dated 15/12/2023 passed under section 250 of the Income Tax Act, 1961 ( the Act ) by the learned Commissioner of Inco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o. 2 raised in assessee s appeal pertains to the addition of Rs. 35,86,547 on account of alleged bogus purchases made by the assessee. 5. The brief facts of the case pertaining to this issue, as emanating from the record, are: The assessee is trading in ferrous and non-ferrous metals. For the year under consideration, the assessee filed its return of income on 30/09/2009 declaring a total income of Rs. 68,44,134. The return filed by the assessee was selected for scrutiny and vide order dated 21/12/2011 passed under section 143(3) of the Act the total income of the assessee was assessed at the returned income. Reassessment proceedings under section 147 of the Act, were initiated in the case of the assessee based on information received from ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ese parties viz of the payments to the parties, etc. In response to the same, the assessee furnished part details. 6. The Assessing Officer ( AO ) vide order dated 31/03/2015 passed under section 143(3) read with section 147 of the Act did not agree with the submissions of the assessee and held that the assessee has failed to produce the parties from whom it has alleged to have made the purchases. Further, the assessee neither produces any purchase parties nor any broker for examination. It was further held that the assessee has also failed to produce the supporting documents, i.e. proper delivery challan, transport receipt, storekeeper register or acknowledgement of receiving goods from the bogus parties. The AO further held that the asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cheque. However, we find that before the lower authorities, the assessee was neither able to produce the parties nor could furnish the documents as directed by the AO. Even before us, no such details are available on record. Therefore, from the material available on record it is evident that the assessee has failed to prove the genuineness of the purchases made from the supplier. Therefore, it appears to be a case of bogus bills arranged from the aforesaid entities and materials purchased from somewhere else at a lower cost. Thus, we are of the considered view that a reasonable disallowance of the purchases would meet the possibility of revenue leakage. During the hearing, the learned AR placed reliance upon the decision of the coordinate b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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