9911796707
TMI Blog2024 (9) TMI 1056X X X X Extracts X X X X X X X X Extracts X X X X ..... to 12.5% of the balance amount of bogus purchases as confirmed by ITAT - HELD THAT:- AO did not accept the evidence but instead, made independent inquiries and added the amount in assessee s income. AO, however, has not disputed the sales made by assessee out of such purchases. CIT(A) has given detailed findings for justifying addition to the extent of 12.5% only. The Courts have time and again he ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... had stated before the Sales Tax Department that they were indulged in activity of issuing bogus sale bills without actually selling any material and assessee was one of the beneficiaries. Accordingly, assessment of assessee for AY 2011-12 was reopened under Section 147 of the Income Tax Act, 1961 ( the Act ) and notice under Section 148 of the Act was issued. During the reassessment proceedings, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sales were not doubted and without purchases there cannot be sales. Accordingly, the CIT(A) held that only the profit element embedded in the amount of bogus purchases should be taxed which he estimated at 12.5%. The CIT(A) deducted the Value Added Tax ( VAT ) amount and other expenses and restricted the disallowance to 12.5% of the balance amount of bogus purchases. In that manner, the CIT(A) ga ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to 12.5% of the total amount of bogus purchases (computed after erroneously allowing some deductions) by holding that only the profit element embedded in such purchases is taxable, without appreciating the fact that the suppliers in question are non-existent and there is no proof of delivery of goods? 5. We have considered the impugned order with the assistance of counsel and we find no infirmity ..... X X X X Extracts X X X X X X X X Extracts X X X X
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