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Income Tax Appellate Tribunal, “SMC”, BENCH MUMBAI
Before: SHRI R.C.SHARMA, AM
आदेश / O R D E R PER R.C.SHARMA (A.M): This is an appeal filed by the assessee against the order of CIT(A)- 21, Mumbai dated 13/09/2016 for the A.Y. 2009-10 in the matter of order passed u/s. 143(3) r.w.s. 147 of the IT Act. 2. The only grievance of assessee relates to addition of Rs.2,29,008/- on account of bogus purchases. I have considered rival contentions and found that AO has made addition on account of purchases by observing that as per information from Sales Tax Department, the suppliers were Hawala Dealers and not actually dealing in the goods. Accordingly AO made an addition of Rs.2,29,008/- on account of such purchases. 3. By the impugned order, CIT(A) confirmed the action of the AO.
Premier Refrigeration Limited 4. I have considered rival contentions and found from record that assessee has linked entire purchases with the sales. The sales accounted by assessee was not disbelieved by the AO nor books of accounts was rejected. Under these circumstances, it is not correct to add entire purchases in assessee’s income. Keeping in view the totality of facts and circumstances of the case vis-à-vis, judicial pronouncements cited by learned AR I am inclined to restrict addition to the extent of 12.5% of such bogus purchases.
In the result, appeal of the assessee is allowed in part.