Sharma for A.Y. 2004-
05
ii) Additions for unexplained expenses/bogus purchase
from M/s. Prateek Enterprises & M/s. Saluja Enterprises ... take up the common issue relating to addition for alleged
bogus purchase from M/s. Prateek Enterprises and M/s. Saluja
Enterprises for which addition
purchases which are bogus but the sales too. The
turnover was inflated by arranging bogus vouchers of purchases and
issuing bogus vouchers of sales ... issuing such bogus sale bill. In other words the assessee was not
earning anything in the process of obtaining bogus purchase vouchers
connection with reopening the
assessment on the basis of the bogus purchase. Before going further, we
deem it necessary to advert the copy of notice ... account of bogus purchases. The only addition made was an amount of
Rs.39,29,422/- being bogus purchase. The Internal Audit has made
bogus entries of sale of material from hawala entry operators in favour of the assessee
wherein the assessee made alleged bogus purchases through these bogus ... provider/bogus suppliers were being used by certain parties to obtained bogus bills.
The assessee was found to have taken accommodation entry/bogus purchase bills
this is case for bogus capital.
Prior to that he has also observed that the depreciation admitted on bogus purchase
should have been considered ... withdrawal
has been linked to the bogus purchases accepted and the figure of the bogus purchase and the depreciation
withdrawn has been brought
assessee, however, the AO has made addition of 3% of alleged bogus
purchase. The addition of 3% of alleged bogus purchases was made ... hearing before us in which 0%, 3%, 5% of alleged bogus purchase is
accepted. There may be several views on this issue. When the Assessing
been disturbed by the AO,
treating the same as bogus, therefore, the entire bogus purchase could not have
been added to the total income ... treats the purchase as bogus, then, the sales also is bogus and since such bogus
purchase has been sold at a price higher than cost
with him but the
Assessing Officer was not satisfied, therefore, the bogus purchase to
the tune of Rs.4,14,91,279/- was added ... claim of the assessee to the extent of 12.5% of the bogus purchase.
The assessee was not satisfied, therefore, filed the present appeal
before
page 28 to 34 of the paper book
alleged claim of bogus purchase amount of Rs.4,05,57,307/-. The amount of bogus
purchase ... During the assessment proceedings, the assessee had confronted about the
alleged bogus purchase related to 8 different parties as provided by the Sales Tax
Department
beneficiaries of such bogus bills. The name of the assessee
also appears in the list of persons who had obtained bogus purchase bills from ... provider/bogus suppliers were being used by certain parties to obtained bogus bills,
assessee was found to have taken accommodation entry/bogus purchase bills during
