Addition of Rs. 70,03,826 towards payment on account of bogus
purchases.
(d) Addition of Rs. 17,99,788 towards credit balances in respect ... assessee has submitted that out of the total purchases, the
purchases considered as bogus are only 14%. 86% purchases have been
found to be genuine
year.
He explained that if rupees hundred is booked as bogus
expenditure or bogus purchases in the books and if rupees
hundred is also carried ... bogus expenditure but identical stock
is increased without having such stocks physically available
with the assessee neutralizes the impact of bogus purchases
booked
conclusion that the assessee inflated its purchases by recording bogus purchases made from the following six parties :
(1). Hemant Textile Suppliers ... holding the purchases made from the aforesaid six parties as bogus purchases.
2.1 In addition to the aforesaid addition, the learned ITO also noticed that
also
showing the purchases and the sales to and from the appellant of such
purchases and sales, which are bogus. Therefore, he noted that ... purchases since
it is not a case where only purchases are in doubt and assessee has
recorded fictitious sales and purchases to cover
suppression of the yield of rice bran oil, bogus consumption of raw material and bogus purchases shown by it from Raj Kumar Raghubir Kumar, Ludhiana ... case of the assessee for alleged bogus purchases because if purchases were held to be bogus, then corresponding adjustment would have to be made from
account of gross profit @ 12.50% on
alleged bogus purchases of Rs. 23983261/- to the total income of the
Appellant. Provisions of the Act ought ... assessee un-holy involvement with 28 bogus entry providers
wherein the assessee is beneficiary of bogus entries of purchases to the tune
amount of bogus
8
Bogus purchases group
purchases respectively. Aggrieved thereby, the assessees as well as the
Revenue have come up in appeals before ... bogus purchase bills received by the
assessee(s) as accommodation entries from hawala dealers. It is seen that
the issue of bogus purchases has recently
very basis of the purchases. In essence therefore,
the Commissioner (Appeals) believed assessee s theory that the
purchases were not bogus but were made from ... estimated on such
purchases made from M/s.Daksh Diamonds. As the purchases invoices
issued against the alleged bogus purchases remains unverifiable, and part
appreciate that the purchases was duly
accounted in the books of the appellant. Hence, treating the purchases as
bogus and thereby' making addition ... would be
that the purchases were made from alternate sources. The purchases made
from alternate sources corresponding to the bogus purchases were treated as
unexplained
alleged bogus purchases by the assessing officer Assessing Officer (A.O.) and confirmation of the same by the CIT(A) without appreciating the full facts ... sale and consumption of those related purchases from the aforesaid parties. Accordingly he treated these purchases as bogus and added the same as inflated expenses
