2019 (2) TMI 1632 - BOMBAY HIGH COURT

Bogus purchases - bogus accommodation bills - hawala transactions from certain parties who were only providing accommodation sale bills - whether the Revenue is correct in contending that the entire purchase amount should be added by way of assessee's additional income or the assessee is correct in contending that such logic cannot be applied? - ITAT deleted the addition - HELD THAT:- The finding of the CIT(A) and the Tribunal would suggest that the department had not disputed the assessee's sales. There was no discrepancy between the purchases shown by the assessee and the sales declared. That being the position, the Tribunal was correct in coming to the conclusion that the purchases cannot be rejected without disturbing the sales in case of a trader. The Tribunal, therefore, correctly restricted the additions limited to the extent of bringing the G.P. rate on purchases at the same rate of other genuine purchases. - Decided against revenue