RASIKLAL HIRALAL & CO. P.LTD, MUMBAI V. ITO 4(3)(2), MUMBAI

ITA 258/MUM/2016

• Counselvise Citation: [2016] 132 COUNSELVISE.COM (IT) 3016 (ITAT-MUMBAI)
• Duration Of Justice: 5 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-06-2016
• Appeal Filed By: Assessee
• Bench Allotted: Not Allotted
• Assessment Year: 2007-2008
• Appeal Filed On: 15-01-2016
• Court: TRIBUNAL
• Assessee Lawyers: VIJAY KUMAR S BIYANI; ARTI VISANJI
• Keywords: Bogus purchase
• Section: 143(3); 133(6); 147; 68

Judgement Text

, , D, IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES D, MUMBAI , , , BEFORE SHRI JOGINDER SINGH, JUDICIAL MEMBER, AND SHRI ASHWANI TANEJA, ACCOUNTANT MEMBER ITA NO.258/MUM/2016 ASSESSMENT YEAR: 2007-08 & ITA NO.259/MUM/2016 ASSESSMENT YEAR: 2008-09 & ITA NO.260/MUM/2016 ASSESSMENT YEAR: 2009-10 RASIKLAL HIRALAL & CO. P. LTD., EC-4051 & 4053 BHARAT DIAMOND BOURSE, BKC BANDRA (E) MUMBAI-400051 / VS. ITO 4 ( 3 ) ( 2 ) AAYAKAR BHAVAN MUMBAI- (ASSESSEE ) (REVENUE) P.A. NO. AAACR1854J !' / ASSESSEE BY SMT. ARTI VISANJI & SHRI VIJAY KUMAR S. BIYANI (AR) / REVENUE BY SHRI B.S. BIST ( SR. DR) # $ % & / DA TE OF HEARING : 16/06/2016 % & / DATE OF ORDER: 29/06/2016 / O R D E R RASIKLAL HIRALAL & CO. P. LTD. 2 PER ASHWANI TANEJA (ACCOUNTANT MEMBER): THESE APPEALS PERTAIN TO THE SAME ASSESSEE FOR THRE E DIFFERENT YEARS PASSED AGAINST THE ASSESSMENT ORDER S U/S 143(3) R.W. SECTION 147 OF THE INCOME TAX ACT 1961. THESE GROUNDS RAISED IN ALL THREE APPEALS ARE IDENTICAL A ND THEREFORE, THESE WERE HEARD TOGETHER AND BEING DISPOSED OF BY THIS COMMON ORDER. 2. DURING THE COURSE OF HEARING, ARGUMENTS WERE MADE B Y SMT. ARTI VISANJI & SHRI VIJAY KUMAR S. BIYANI, AUT HORISED REPRESENTATIVE (AR) ON BEHALF OF THE ASSESSEE AND B Y SHRI B.S. BIST, DEPARTMENTAL REPRESENTATIVE (DR) ON BEHALF OF THE REVENUE. WE SHALL FIRST TAKE UP APPEAL FOR A.Y. 2007-08 IN I TA NO.258/MUM/2016: 3. GROUND NO.1: IN THIS GROUND THE ASSESSEE PERTAINS TO REOPENING U/S 147/148 OF THE ACT. 3.1. DURING THE COURSE OF HEARING NO ARGUMENTS HAVE BEE N MADE WITH RESPECT TO THIS GROUND. UNDER THESE CIRCU MSTANCES, GROUND NO.1 IS DISMISSED. 4. GROUND NO.2: IN THIS GROUND THE ASSESSEE HAS CHALLENGED THE ACTION OF AO IN MAKING ADDITION OF RS.9,28,971/ - BEING RASIKLAL HIRALAL & CO. P. LTD. 3 100% OF AMOUNT OF PURCHASE MADE BY THE ASSESSEE FRO M ALLEGED BOGUS PARTIES. 4.1. DURING THE COURSE OF ASSESSMENT PROCEEDING, THE AO NOTED THAT ASSESSEE HAD MADE PURCHASES FROM A PARTY NAMELY M/S. MAYUR EXPORTS. IT WAS NOTED BY THE AO THAT DUR ING THE COURSE OF SEARCH OPERATIONS CARRIED OUT BY THE INVE STIGATION WING OF THE INCOME TAX DEPARTMENT AT VARIOUS PLACES WITH RESPECT TO FINDING OUT PERSONS INVOLVED IN FRAUDULE NT BILLING ACTIVITIES, IT WAS REVEALED THAT THE SAID PARTY IS ONE OF THE PARTIES OF A BIG RACKET INVOLVED IN BUSINESS OF BOG US BILLING. ACCORDINGLY, THE AO TREATED ENTIRE AMOUNT OF PURCHA SES MADE BY THE ASSESSEE FROM THE SAID PARTY AS BOGUS AND DI SALLOWED THE SAME. 4.2. BEING AGGRIEVED, THE ASSESSEE FILED AN APPEAL BEFO RE THE LD. CIT(A) AND MADE EXHAUSTIVE SUBMISSIONS TO SHOW THAT AMOUNT OF PURCHASE MADE FROM THE SAID PARTY WAS NOT BOGUS. FOR THE SAKE OF READY REFERENCE WRITTEN SUBMISSIONS FILED BY THE ASSESSEE BEFORE THE LD. CIT(A) ARE REPRODUCED B ELOW: 'THE LEARNED ASSESSING OFFICER HAS ERRED IN MAKING ADDITION OF RS.9,28,9711- BEING 100% OF AMOUNT OF RS.9,28,971/- OF PURCHASES MADE BY APPELLANT FROM ALLEGED BOGUS PARTIES MENTIONED IN THE ASSESSM ENT ORDER. IN RESPECT OF THE ABOVE ADDITION, THE APPELLANT HER EBY SUBMITS THE FOLLOWING DETAILS RASIKLAL HIRALAL & CO. P. LTD. 4 PARTICULARS 1. A CHART COMPRISING OF DETAILS OF ABOVE PURCHASE/S AND PAYMENT THEREOF THROUGH BANKING CHANNELS, EXPORT OF THE GOODS SO PURCHASED AND RECEIPTS OR PAYMENT OF SUCH EXPORTS 1 TO 1 2. COPY OF PURCHASE INVOICE/S. 2 TO 2 3. COPY OF BANK STATEMENT BEING EVIDENCE OF PAYMENT FOR THE ALLEGED BOGUS PURCHASES THROUGH BANKING CHANNEL 3 TO 3 4. CONFIRMATION IN RESPECT OF ABOVE REFERRED PURCHASES/S 4 TO 5 5. RELEVANT EXTRACT OF STOCK BOOK SHOWING ENTRY IN RESPECT OF THE ABOVE PURCHASE/ES AND SALES THEREOF. 6 TO 6 6. COPY OF RELATED CUSTOM ATTESTED EXPORT INVOICE, SHIPPING BILLS FOR EXPORTS AND EVIDENCE IN RESPECT OF REALIZATION OF EXPORT PROCEEDINGS 7 TO 16 THE LEARNED ASSESSING OFFICER HAS CONFIRMED IN PAR 4 ON PAGE 3 OF THE ASSESSMENT ORDER THAT MESSRS MAYUR EXPORT FROM WHOM THE GOODS WERE PURCHASED HAVE REPLIED TO HIS NOTICE U/S. 133(6) DATED 19-01-2015 VIDE THEIR LETTER DATED 27-01- 2015 AND CONFIRMED THE TRANSACTIONS AND RECEIPTS OF PAYMENT BY THEM. RASIKLAL HIRALAL & CO. P. LTD. 5 REASONS FOR ADDITIONS: THE LEARNED ASSESSING OFFICER HAS MADE ADDITION U/S . 68 OF THE INCOME TAX ACT FOR AN AMOUNT OF RS. 35,35,9271- WHICH INTER ALIA INCLUDES THE AMOUNT OF RS.928,971/- BEING PURCHASES MADE BY THE APPELLANT COMPANY FROM M/S. MAYUR EXPORTS. THE PRIMARY REASONS FOR SUCH ADDITIONS ARE AS UNDER; 1. DURING COURSE OF THE INVESTIGATION, THE INVESTIGATION WING AT MUMBAI FOUND NUMBER OF COMPANIES WHO ARE PROVIDING BOGUS PURCHASES BILLS T O VARIOUS BENEFICIARIES FOR A COMMISSION 2. SUCH COMPANIES/FIRMS WERE CONTROLLED, MANAGED AND OPERATED BY SHRI BHANWARLAL JAIN AND HIS ASSOCIATES . 3. AS REPORTED BY THE INVESTIGATION WING, THE DIRECTOR S / PARTNERS OF SUCH ALLEGED BOGUS ENTITIES HAVE ADMITTED IN THE STATEMENTS GIVEN ON OATH U/S. 137 THAT THEY WERE IN FACT DUMMY WHO USE TO SIGN VARIOUS PAPERS FOR NOMINAL CONSIDERATION GIVEN TO THEM BY SHRI BHANWARLAL JAIN. FURTHER AS PER THE ASSESSMENT ORDER SHRI BHANWARLAL FAIN ALSO MADE SIMILAR STATEMENTS ON OATH U/S. 132'4). 4. IT IS ALSO ALLEGED IN THE ASSESSMENT ORDER THAT SHR I BHANWARLAL JAIN IN THE SAME STATEMENT HAS GIVEN A LIST OF ALL COMPANIES AND FIRMS WHICH WERE CONTROLLED BY HIM, PROVIDING BOGUS PURCHASES. THE LIST HAS BEEN COMMUNICATED TO THE FIELD OFFICERS SO THAT PROPER APPROPRIATE ACTION CAN BE TAKEN IN THE CASES BEFORE THEM. 5. HOWEVER THE LEARNED ASSESSING OFFICE HAS MADE ADDITION U/S. 68 OF THE INCOME TAX ACT, 1961 RELATI NG TO CASH CREDIT AND HAS INTER ALIA HELD AS UNDER :- 6. (A) THE EXPRESSION ' THE ASSESSES OFFERS NO RASIKLAL HIRALAL & CO. P. LTD. 6 EXPLANATION' MEANS WHERE THE ASSESSES OFFER NO PROPER, REASONABLE AND ACCEPTABLE EXPLANATION AS REGARDS THE SUMS FOUND CREDITED IN THE HOOKS MAINTAINED BY THE ASSESSEE. (B) IDENTITY OF THE PERSON WAS NOT PROVED. (C) CREDITWORTHINESS AND GENUINENESS OF THE TRANSACTION S WAS NOT PROVED AS CREDITWORTHINESS WAS NOT PROVED B Y MERE ISSUE OF A CHEQUE BY FURNISHING A COPY OF STATEMENT OF HANK ACCOUNT. CIRCUMSTANCES MIGHT REQUIRE THAT THERE SHOULD BE SOME EVIDENCE OF POSIT IVE NATURE TO SHOW THAT THE PURCHASE TRANSACTION IS A G ENUINE TRANSACTION. (D) SURROUNDING AND CORROBORATIVE FACTUAL DETAILS ARE EQUALLY IMPORTANT AND MAY JUSTIFY REQUIREMENT OF FURTHER PROOF OR DETAILS BEFORE ONUS IS DISCHARGED. THUS, MERE RELIANCE ON NEUTRAL DOCUMENTARY EVIDENCE CANNOT ALWAYS BE REGARDED AS SATISFACTORY DISCHARGE ON ONUS. 6. THEREAFTER AFTER FURTHER DISCUSSION THE LEARNED ASSESSING OFFICER HELD AS UNDER: 'AFTER CONSIDERING THE ENTIRE MATERIAL, I AM OF THE OPINION THAT THE ASSESSEE DID NOT PURCHASE THE GOODS FROM T HE PARTY MENTIONED IN THE SALE BILL. AS PER THE INFORM ATION RECEIVED FROM THE DIRECTOR OF INCOME TAX (INV.), MU MBAI, THIS PARTY M/S. MAYUR EXPORTS IS A NON-GENUINE PART Y WHO ONLY ENGAGED IN FRAUDULENT BILLING ACTIVITIES. THEREFORE, THE AMOUNT OF ALLEGED PURCHASES RS. 35,35,927/- IS TREATED AS NON-GENUINE PURCHASE. IN VIEW OF THE ABOVE, I AM OF THE OPINION, AN AMOUN T OF ALLEGED PURCHASES RS. 35,35,927/- CREDITED IN THE B OOKS OF THE ASSESSEE COMPANY IN THE NAME OF M/S. MAYUR EXPORTS AND THE NATURE AND SOURCE THEREOF RASIKLAL HIRALAL & CO. P. LTD. 7 OFFERED/EXPLAINED BY TIME ASSESSEE COMPANY IS NOT SATISFACTORY.' SUBMISSIONS 1. THE APPELLANT HAS GIVEN FULL DETAILS IN RESPECT OF ALLEGED BOGUS PURCHASE FROM M/S. MAYUR EXPORTS WHIC H ARE AVAILABLE AT PAGE NOS. 1 TO 16 2. FURTHER M/S. MAYUR EXPORTS HAS RESPONDED TO NOTI CE U/S. 133(6) ISSUED AND CONFIRMED THE TRANSACTIONS ( AS CONFIRMED BY THE LEARNED ASSESSING OFFICER IN PARA 4 OF HIS ORDER). 3.THE INITIAL BURDEN ON THE APPELLANT TO PROVE GENUINENESS OF THE PURCHASE WAS FULFILLED AND THE APPELLANT HAS THUS DISCHARGED PRIMARY ONUS. 4. BEFORE ARRIVING AT CONCLUSION THE LEARNED ASSESS ING OFFICER HAS NOT CONDUCTED ANY ENQUIRY EXCEPT NOTICE ISSUED TO M/S. MAYUR EXPORTS U/S. 133(6) WHICH WAS FULLY COMPLIED AND THE TRANSACTIONS WAS CONFIRMED A ND THUS THE LEARNED A.O. IS BOUND TO FOLLOW THE PRESUM PTION OF LAW 'WHAT IS APPEARED IS REAL'. 5.NO DEFECTS HAVE BEEN FOUND IN BOOKS. 6.THE APPELLANT HAS NEVER BEEN PROVIDED COPIES OF MATERIAL BASED ON WHICH THE LEARNED ASSESSING OFFIC ER WAS RELYING. 7.ONCE SALES OF THE APPELLANT (IN THIS CASE EXPORTS ) ARE NOT DOUBTED NO ADDITION CAN BE MADE BY DOUBTING PURCHASES. 8.WITHOUT PREJUDICE ONLY PROFITS EMBODIED IN SALE PROCEEDS CAN BE TAXED , AS IT IS REAL INCOME WHICH IS TAXABLE AS CONSUMPTION RELATED TO SALES AGAINST ALLEGED BOGUS PURCHASES STANDS PROVED , NO ADDITION CAN BE MADE. 9.THE PROFITABILITY LEVEL OF THE APPELLANT IS AS UN DER: SALES GROSS PROFIT RS. 93,43,677 8,00,294 8.56 PRAYER IN VIEW OF THE ABOVE IT IS STATED THAT NO ADDITION IS CALLED FOR IN THIS CASE AND THUS ADDITION OF RASIKLAL HIRALAL & CO. P. LTD. 8 RS:9,28,971/- NEEDS TO BE DELETED.' 4.3 . BUT, LD. CIT(A) DID NOT AGREE WITH THE SUBMISSION S OF THE ASSESSEE AND CONFIRMED ADDITION MADE BY THE AO BY P ASSING BRIEF ORDER. 4.4. BEING AGGRIEVED, THE ASSESSEE FILED AN APPEAL BEFO RE THE TRIBUNAL. 4.5. DURING THE COURSE OF HEARING LD. COUNSEL OF THE AS SESSEE VEHEMENTLY ARGUED THAT LD. CIT(A) ERRED IN REJECTIN G THE EVIDENCES FILED BY THE ASSESSEE THAT TOO WITHOUT GI VING A PROPER REASONING. IT WAS SUBMITTED BY HER THAT THE AO HAD MADE DIRECT INQUIRY WITH THE SAID PARTY WHICH WAS POSITI VELY CONFIRMED. IT WAS FURTHER SUBMITTED THAT SINCE THE GOODS PURCHASED WERE SOLD BY WAY OF EXPORT WHICH COULD NO T BE DENIED BY THE INCOME TAX DEPARTMENT. THE QUANTITATI VE RECONCILIATION IS AVAILABLE, THUS, IT CAN BE SAID T HAT ITEMS SOLD MUST HAVE BEEN PURCHASED ALSO. SHE ALSO DREW OUR AT TENTION ON A CHART TO SHOW THAT IF PURCHASES ARE DISALLOWED FULLY THEN GP RATE SHALL SHOOT UP TO A VERY HIGH AND UNREASONA BLE FIGURE. SHE ALTERNATIVELY SUBMITTED THAT IN ANY CASE PURCHA SES CANNOT BE DISALLOWED IN FULL. SHE RELIED UPON THE JUDGMENT OF HONBLE BOMBAY HIGH COURT IN THE CASE OF CIT V. NIKUNJ EXIM ENTERPRISES P. LTD. 372 ITR 619 AND JUD GMENT OF THE TRIBUNAL IN THE CASE OF ACIT V. SAY INDIA JEWEL LERS IN ITA NO.6735/MUM/2010 DATED 08.08.2014 AND SHRI JIGAR SH AH (ITA NO.1223/MUM/2014 DATED 22.01.2016. RASIKLAL HIRALAL & CO. P. LTD. 9 4.6. PER CONTRA LD. DR SUBMITTED THAT THIS IS A CASE OF BOGUS PURCHASES. THE DISALLOWANCE WAS RIGHTLY MADE BY THE AO AND CONFIRMED BY THE LD. CIT(A). 4.7. WE HAVE GONE THROUGH THE ORDERS OF THE LOWER AUTHO RITIES AND SUBMISSIONS MADE BY THE LD. COUNSEL AND ALL THE JUDGMENTS RELIED UPON BY HER BEFORE US. WE HAVE ALS O GONE THROUGH THE SUBMISSIONS MADE BY LD. DR ON BEHALF OF REVENUE. IT IS NOTED BY US THAT VARIOUS DETAILS AND EVIDENCES WERE FILED BY THE ASSESSEE BEFORE THE LD. CIT(A) WH ICH WERE SUPPORTED BY EXHAUSTIVE SUBMISSION ON LAW AND FACTS . LD. CIT(A) NOTED THAT THE PURCHASES WERE MADE FROM ONE OF THE BHANWRALAL GROUP CONCERNS WHICH WERE FOUND BY THE INVESTIGATION WING TO BE ENGAGED IN BUSINESS OF BOG US BILLING. THEREAFTER, LD. CIT(A) WITHOUT DEALING WITH THE EVI DENCES FILED BY THE ASSESSEE INDIVIDUALLY, CONFIRMED THE ORDER O F THE LD. AO IN A SUMMARISED MANNER AS UNDER: 5.3.2. FROM THE ABOVE CHART, IT IS FOUND THAT 9,28,971/- WAS PURCHASED AS A PART OF ARRANGEMENT WITH BHANWARLAL GROUP OF CASES BY VIRTUE OF BOGUS E NTRIES AS PER THE FINDINGS OF INVESTIGATION WING OF INCOME TAX DEPARTMENT AND AS DISCUSSED BY THE AO IN THE ASSESS MENT ORDER. THIS IS THE CASE OF ASSESSEE COMPANY BEING D IRECT BENEFICIARY OF THE BOGUS BILLING. THEREFORE, THE CA SE LAWS REFERRED BY THE AR CANNOT BE ACCEPTED IN THE FACTS AND CIRCUMSTANCES OF THE PRESENT CASE. ACCORDINGLY, THE ADDITION OF 9,28,971/- WHICH HAS BEEN ADDED IN THE HANDS OF COMPANY IS UPHELD FOR THE DETAILED REASON GIVEN BY THE AO IN THE ASSESSMENT ORDER AND FOR THE SAKE OF BREV ITY, WHICH IS NOT BEING REPRODUCED HERE. THE ADDITION OF RASIKLAL HIRALAL & CO. P. LTD. 10 RS.9,28,971/- MADE BY THE AO IS UPHELD. IN THE RESULT, APPELLANT'S GROUND OF APPEAL IS DISM ISSED. 4.8. IT IS NOTED BY US THAT LD. CIT(A) HAS NOT GIVEN PR OPER REASONING AS TO WHY THE EVIDENCES FILED BY THE ASSE SSEE WERE REJECTED. IT IS NOTED THAT THE ASSESSEE HAS SUBMITT ED VARIOUS EVIDENCES INCLUDING CONFIRMATION OF THE SUPPLIERS, COPIES OF BILLS, COPIES EXTRACT BOOK SHOWN ENTRIES IN RESPECT OF PURCHASE AND SALE OF THESE ITEMS AND ALSO COPIES OF CUSTOMS AND COPIES OF EXPORT INVOICE AND SHIPPING BILLS AND EVIDENCES OF EXPORT OF THE ITEMS PURCHASED. COPY OF BANK STATEMENT WAS ALS O SUBMITTED EVIDENCING PAYMENT FOR THE ALLEGED BOGUS PURCHASE THROUGH BANKING CHANNEL. NONE OF THESE EVIDENCES HA VE BEEN DISCUSSED BY THE LD. CIT(A)WHILE REJECTING THE CLAI M OF THE ASSESSEE. UNDER THESE CIRCUMSTANCES, WE FIND IT APP ROPRIATE TO SEND THIS ISSUE BACK TO THE FILE OF THE LD. CIT(A) WITH THE DIRECTION TO EXAMINE ALL THE EVIDENCES SUBMITTED BY THE ASSESSEE. THE LD. CIT(A) SHOULD GIVE ADEQUATE OPPOR TUNITY OF HEARING TO THE ASSESSEE TO EXPLAIN ITS CASE AND SUB MIT ALL THE DOCUMENTARY EVIDENCES IN SUPPORT OF THEIR CLAIM. IN CASE, THE PRIMARY REQUEST OF THE ASSESSEE IS NOT FOUND ACCEPT ABLE BY THE LD. CIT(A) THEN BEFORE REJECTING THE GROUND OF THE ASSESSEE IN TOTO , THE LD. CIT(A) SHOULD ALSO CONSIDER ALTERNATIVE P RAYER OF THE ASSESSEE WHEREIN IT HAS BEEN SUBMITTED THAT SIN CE QUANTITATIVE RECONCILIATION IS AVAILABLE, THEN, IT IS ESTABLISHED THAT ITEMS SOLD BY THE ASSESSEE MUST HAVE BEEN PURC HASED BY THE ASSESSEE, IF NOT FROM THIS CONCERN THEN DEFINIT ELY FROM SOME OTHER SUPPLIER. UNDER THESE CIRCUMSTANCES, THE RASIKLAL HIRALAL & CO. P. LTD. 11 PURCHASES CANNOT BE DISALLOWED IN ENTIRETY. UNDER T HESE CIRCUMSTANCES, THE LD. CIT(A) MAY EXAMINE THE CORRE CT RATE OF PURCHASE OR HE MAY CONSIDER PART DISALLOWANCE OUT O F PURCHASE, KEEPING IN VIEW G.P. RATE OF THE ASSESSEE IN THE CURRENT YEAR AND IN THE PAST YEARS AND MAY ALSO CON SIDER G.P. RATE OF THE INDUSTRY. HE MAY ALSO CONSIDER MAR KET RATES OF IMPUGNED ITEMS OR ANY OTHER PARAMETERS TO ASCERTAIN APPROPRIATE AMOUNT OF PURCHASES TO BE ALLOWED. FOR WORKING OUT TOTAL AMOUNT TO BE DISALLOWED, HE MAY ALSO CONS IDER IF ANY ADDITION IS REQUIRED TO BE MADE ON ACCOUNT OF ANY I NVESTMENT MADE BY THE ASSESSEE IN ROTATING THE CASH FOR PROCU RING BOGUS BILLS, ISSUING CHEQUES AND RETURNING CASH ETC. THE ASSESSEE IS ALSO FREE TO SUBMIT ALL REQUISITE EVIDENCES AND MAY RAISE ALL LEGAL AND FACTUAL ISSUES AS MAY BE CONSIDERED APPRO PRIATE AS PER LAW AND MAY ALSO SUBMIT ALL THE JUDGMENTS AS H AVE BEEN RELIED UPON BEFORE US OR ANY OTHER JUDGMENT AS MAY BE CONSIDERED APPROPRIATE. AFTER CONSIDERING ENTIRE MA TERIAL PLACED BY THE ASSESSEE AND JUDGMENTS AVAILABLE AS O N THAT DATE, LD. CIT(A) SHALL DECIDE THIS ISSUE AFRESH AND SHALL PASS SPEAKING ORDER DEALING WITH ALL THE ASPECTS AND ISS UES AS MAY BE RAISED BY THE ASSESSEE AND AS MAY BE CONSIDERED APPROPRIATE BY THE LD. CIT(A) AS PER LAW. 4.9. IN THE RESULT, THIS APPEAL IS PARTLY ALLOWED FOR S TATISTICAL PURPOSES IN TERMS OF OUR DIRECTIONS AS DISCUSSED AB OVE. RASIKLAL HIRALAL & CO. P. LTD. 12 NOW WE SHALL TAKE UP ITA NOS. 259,260/MUM/2016 FOR A.YS. 2008-09 & 2009-10: 5. IT IS NOTED THAT GROUND NO. 1 OF BOTH THE APPEALS DEAL WITH REOPENING OF THE ASSESSMENT. IN ABSENCE OF ANY ARGU MENTS, FROM THE ASSESSEE, THE SAME IS DISMISSED. 6. GROUND NO.2: THIS GROUND IN BOTH THE APPEALS, PERTAIN TO THE ADDITION ON ACCOUNT OF BOGUS PURCHASES. THE FAC TS AND ISSUES INVOLVED IN THIS GROUND IN BOTH THESE YEARS IS IDENTICAL TO A.Y. 2007-08, THEREFORE, THIS GROUND IS SENT BAC K TO THE FILE OF LD. CIT(A) WITH THE SAME DIRECTIONS AS HAVE BEEN GIVEN IN A.Y. 2007-08. THE LD. CIT(A) IS DIRECTED TO FOLLOW OUR ORDER FOR A.Y. 2007-08. 7. IN THE RESULT, THESE APPEALS FILED BY THE ASSESSEE ARE PARTLY ALLOWED FOR STATISTICAL PURPOSES IN TERMS OF DIRECT IONS GIVEN IN THE ORDER. ORDER PRONOUNCED IN THE OPEN COURT ON 29 TH JUNE, 2016. SD/- (JOGINDER SINGH) SD/- (ASHWANI TANEJA) '# / JUDICIAL MEMBER $# / ACCOUNTANT MEMBER # $ MUMBAI; ( DATED: 29/06/2016 CTX? P.S/. . . RASIKLAL HIRALAL & CO. P. LTD. 13 %'&'()(*& / COPY OF THE ORDER FORWARDED TO : 1. *+, / THE APPELLANT 2. -.+, / THE RESPONDENT. 3. / / # 0 ( * ) / THE CIT, MUMBAI. 4. / / # 0 / CIT(A)- , MUMBAI 5. 34 - , / *& 5 , # $ / DR, ITAT, MUMBAI 6. 6! 7$ / GUARD FILE. / BY ORDER, .3* - //TRUE COPY// / (DY./ASSTT. REGISTRAR) , # $ / ITAT, MUMBAI