12.5% disallowance out of the bogus purchases, done by the learned CIT(A) meets the end of justice

Last updated: 22 January 2021

Court :
ITAT Mumbai

Brief :
These are appeals by the revenue wherein the revenue is aggrieved thatlearned Commissioner of Income Tax (Appeals) [in short learned CIT(A)] hasreduced the addition by sustaining only 12.5% of the disallowance for bogus purchases.

Citation :
ITA 1328/MUM/2019

THE INCOME TAX APPELLATE TRIBUNAL
“SMC” Bench, Mumbai
Shri Shamim Yahya (AM)

I.T.A. No. 1328/Mum/2019 (Assessment Year 2011-12)
I.T.A. No. 1329/Mum/2019 (Assessment Year 2010-11)
I.T.A. No. 1330/Mum/2019 (Assessment Year 2009-10)

ITO-28(3) (5)
Room No. 323,3rd Floor
6th Tower
Vashi Rai lway Station
Complex, Vashi
Navi Mumbai-400 703.
PAN : AAAFT1005G
(Appellant)

Vs.

M/s. Tristar Engineering
& Chemical Company
W41B, MIDC, Rabale
Navi Mumbai-400 701.
(Respondent)

Assessee by Shri Hardik Shah
Department by Ms. Smita Verma

Date of Hearing 17.12.2020
Date of Pronouncement 01.01.2021

O R D E R

These are appeals by the revenue wherein the revenue is aggrieved thatlearned Commissioner of Income Tax (Appeals) [in short learned CIT(A)] hasreduced the addition by sustaining only 12.5% of the disallowance for bogus purchases.

2. The assessee in this case is engaged into the business of supplier ofindustrial heating and filtration systems. The assessment was reopened upon information from sales tax department that assessee has made purchases frombogus dealers. The Assessing Officer made addition of the bogus purchase as under :-

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