Assessment of the assessee was completed.  Subsequently, an information was received from Investigating officer that it was found from details that name of assessee was found in list of beneficiaries of accommodation entries by way of bogus purchases bills.  On basis of same, a reopening notice was issued upon assessee and, further, Assessing officer disallowed 3 per cent of such bogus expenditure/purchases. Subsequently, PCIT invoked revision on ground that once it was established that expenditure was unexplained/bogus, entire amount of bogus expenditure was to be added to income of assessee.   When Assessing Officer gave an opportunity to assessee to explain transaction, assessee did not produce any document but rather stated that 2 per cent of purported bogus purchase might be added to its income.  The assessment was completed by making addition of 2% of bogus purcahses. Commissioner passed the Revision order and held that the Assessing Officer passed the order without making any inquiry or verification then it would be a case where the order is deemed to be erroneous in so far as it is prejudicial to the interest of Revenue. Accordingly the PCIT held that entire expenses has to be disallowed as being bogus purchases. The Assessing Officer was directed to reassess the income. On appeal the Tribunal quashed the Revision order. On appeal by the Revenue the Court held that the assessee had accepted allegations against it. Since it was established that expenditure was unexplained/bogus, entire amount of bogus expenditure was to be added to income of assessee. Order of PCIT was affirmed and the order of Tribunal was set aside. (AY. 2009-10 to 2011-12)