SHRI. ASHURAM UDARAMJI BISHNOI,MUMBAI vs. ITO 19(1)(2), MUMBAI

In this appeal, the assessee is basically aggrieved for upholding addition of 12.5% made on account of bogus purchases.

I have gone through the orders of the authorities below and found that the A.O. got information regarding assessee taking bogus purchases bills, accordingly, he reopened the assessment and Shri Ashuram U Bishnoi Vs ITO thereafter made addition of 12.5% with respect to alleged bogus purchases. By the impugned order, the ld. CIT(A) has further reduced addition by the amount of G.P. rate declared by the assessee. Against which the assessee is in further appeal before the ITAT.

The ld AR of the assessee has placed on record the order of the Tribunal in assessee’s own for the A.Y. 2009-10 and 2011-12 wherein under similar facts and circumstances, the Tribunal have upheld the addition to the extent of 5%.

I have carefully gone through the order of the Tribunal and found that with regard to similar bogus purchases. The Tribunal in assessee’s own case for the A.Y. 2009-10 and 2010-11 vide its order dated 07/01/2020 passed in & 6640/Mum/2018 has upheld the addition to the extent of 5% in respect of alleged bogus purchases. Respectfully following the order of the Tribunal, I direct the A.O. to restrict the addition to the extent of 5%.

In the result, appeal of the assessee is allowed in part.