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Income Tax Appellate Tribunal, DELHI BENCH: ‘F’ NEW DELHI
Before: SHRI R. S. SYAL & SMT SUCHITRA KAMBLE
ORDER PER SUCHITRA KAMBLE, JM
This appeal is filed by the revenue against order dated 25/10/2010 passed by Ld. CIT(A)-I, Ludhiana. The grounds of appeal are as follows:-
1. The Ld. CIT(A) has erred both in law and on the facts of the case in deleting an addition of Rs.1,89,87,200/-/- made on account of bogus purchases [relying on the ratio of his own decisions in the case of Piyush Developers (P) Ltd in 10, dated 29/09/2010], without appreciating that despite abundant opportunities given by the Assessing Officer, and being confronted on record, the assessee failed to produce the parties and to prove the genuineness, identity and creditworthiness of the parties from whom the alleged purchases were made, the onus for which had squarely shifted on the assessee after the relevant parties were not found to exist at the addresses furnished by the assessee to the Assessing Officer.”
2. The Ld. CIT(A) has erred both in law and on facts of the case in directing the Assessing Officer to compute gross profti @ of 27% instead of (-) 5.70% shiown by the assessee whereas Assessing Officer has rightly disallowed the bogus purchases amounting to Rs.1,89,87,200/-.”
Brief facts of the case are that there was search and seizure operation of Piyush Group of Companies on 16/1/2008. During the course of search at the corporate office of Piyush Group, books of accounts were found and seized as per Annexure A-1 to A-79 of the inventory of seized documents. The assessing officer has taken total income of Rs.1,89,87,200/- on account of bogus purchases made during the year against return income of Rs. 9,92,135/- and passed assessment order dated 29/2/2009. The assessee filed appeal before the CIT(A). The appeal of the assesses on the first ground was dismissed by the Ld. CIT (A) relying upon the order of M/s. Piyush Developers and directed the Assessing Officer to compute gross profit @ of 27% instead of (-) 5.70% shown by the assessee.
The AR submitted an order dated 8th July 2015 passed by the ITAT Delhi Bench in in case of searched party i.e. Piyush Developers Pvt. Ltd., wherein the appeal of Piyush Developers has been allowed and pointed out that in fact the grounds contested by the Revenue in the present case are similar.
The DR totally relied on Assessing Officer’s order but could not distinguish the order passed by this Tribunal in Piyush Developers case. [Piyush Developers Pvt. Ltd. Vs. ACIT (ITA No. 5599/Del/2010) and ACIT Vs. Piyush Developers Pvt. Ltd. (ITA No. 5706/Del/2010) dated 08.07.2015]
We have heard both the parties and perused all the records and found that the issue contested before the ITAT in the present case are covered by Piyush Developers Pvt. Ltd.
In result, the appeal of the Revenue is dismissed.
The order is pronounced in the open court on 7th of October, 2015.