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BHARGAV D. KARIA, NIRAL R. MEHTA
Principal Commissioner Of Income Tax-1 – Appellant
Versus
Keshri Export – Respondent
ORDER :
Niral R. Mehta, J.
[1] The present Tax Appeals under Section 260A of the Income Tax Act, 1961 (for short, “the Act”) are directed against the common order dated 28th June 2022 passed by the Income Tax Appellate Tribunal, Surat in ITA No.917/AHD/2017 (for short, “the Tribunal”) for the Assessment Year 2008-09 and ITA No.761/SRT/ 2018 for the Assessment Year 2010-11 at the instance of the appellant - Revenue by raising the following substantial questions of law:
2. Whether on the facts and circumstances of the case and in law, the Hon’ble ITAT has justified in restricting the addition from 100% to 6% made by the AO ignoring the fact that Shri Bhanwarlal Jain is engaged in the business of accommodation entries and hence AO was correct in concluding that the assessee was a benefic
The court established that in cases of bogus purchases, only a reasonable percentage of the disputed amount should be added to income, reflecting industry practices.
The main legal point established in the judgment is the application of fair and reasonable disallowance percentages for bogus purchases, based on the facts and circumstances of the case and the prece....
The main legal point established in the judgment is the determination of a fair and reasonable percentage for the addition in respect of bogus purchases, based on previous judgments and legal provisi....
The appellate court affirmed the Tribunal's decision to reduce bogus purchase additions and emphasized adherence to prior judicial rulings as decisive in tax matters.
The failure of the respondent-assessee to prove the genuineness of bogus purchases justifies the addition of the entire amount as income under Section 69C of the Income Tax Act.
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