The assessee was not in possession of the bills and other supporting evidence for purchases, the Commissioner (Appeals) observed that the average ratio of bogus purchases to the turnover was merely 1.0 per cent. and therefore, the bogus purchases were estimated. The Tribunal held that there was no infirmity in the orders of the lower authorities in confirming the addition on account of alleged bogus purchases. (AY. 2007-08 to AY. 2009-10)
Dy. CIT v. Wind World India Ltd. (2022) 98 ITR 22 (Mum.)(Trib)
S. 153A : Assessment-Search or requisition-Undisclosed Income-Bogus Purchases from Hawala or Bogus dealers-Assessee not in possession of evidences/bills-Average ratio of bogus purchase to turnover 1%-Bogus purchase estimation on that basis-Additions justified.[S. 132]