The assessee is \u00a0<\/b>engaged in the business of manufacturing and dealership of all kinds of industrial power controlling instrument cables and related items.\u00a0 On the basis of the information received from the sales tax department the AO disallowed the entire purchases\u00a0 from\u00a0 the alleged hawala bill givers\u00a0 and passed the order u\/s 144 of the Act . On appeal considering the additional evidences added only 2% of the profit element on alleged purchases .On appeal by the revenue the Tribunal directed the AO to make further disallowance of 3% alleged purchases . Against the order of the Tribunal the revenue filed an appeal to the High court. Followed , CIT v. Bholanath Polyfab Ltd\u00a0 (2013 ), 355 ITR 290 (Guj)\u00a0 (HC) and distinguished the ratio in \u00a0\u00a0Kaveri Rice Mills v . CIT (2006)157 Taxman 376 ( All\u00a0 ) (HC) . ,CIT v. La Medica (,2001) 250 ITR 575 (Delhi) (HC)\u00a0 (Arising from\u00a0 ITA No.7773\/Mum\/2014 dt .3-11-2016 (ITA No.1330 of 2017 dt 20-02 -2020 (AY. 2010 -11 ) .<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 69C : Unexplained expenditure \u2013 Bogus purchases \u2013 Accommodation entries – Restricting the disallowances at 5% of alleged bogus purchases is held to be justified \u2013 Entire purchases cannot be disallowed . [ S. 37(1),144 ]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-10104","post","type-post","status-publish","format-standard","hentry","category-digest"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-2CY","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/10104","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=10104"}],"version-history":[{"count":2,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/10104\/revisions"}],"predecessor-version":[{"id":17023,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/10104\/revisions\/17023"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=10104"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=10104"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=10104"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}