| COURT: | ITAT Mumbai |
| CORAM: | Mahavir Singh (JM), Ramit Kochar (AM) |
| SECTION(S): | 69C |
| GENRE: | Domestic Tax |
| CATCH WORDS: | Bogus purchases, Bogus Sales, unexplained cash credit |
| COUNSEL: | Prakash Jhunjhunwala |
| DATE: | December 14, 2016 (Date of pronouncement) |
| DATE: | December 29, 2016 (Date of publication) |
| AY: | 2010-11 |
| FILE: | Click here to view full post with file download link |
| CITATION: | |
| S. 69C Bogus Purchases: Though S. 133(6) notices were returned unserved and the assessee could not produce the alleged bogus hawala suppliers, the entire purchases cannot be added as undisclosed income. The addition has to be restricted by estimating Gross Profit ratio on the purchases from the alleged accommodation entry providers | |
The A.O. has doubted the purchases from these four alleged accommodation entry providers being hawala dealers as concluded by Sales Tax Department of Government of Maharashtra to be bogus purchases, that these four parties only provided accommodation bills and the goods were never supplied by these parties and the assessee allegedly made purchases from some other parties for which payments were made through undisclosed income. Thus, the A.O. observed that the assessee has purchased the material from someone else while bogus bills were organized by these hawala dealers, hence, section 69C of the Act was invoked by the AO and additions were made by the AO
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