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2015 (8) TMI 1163 - AT - Income TaxTrading addition - Justification of Gross Profit Rate - bogus purchases - Held that:- This Bench has already decided identical issue in the case of Shri Anuj Kumar Varshney Vs. ITO & others gems and jewellery cases [2015 (4) TMI 533 - ITAT JAIPUR ] wherein detailed findings are given on bogus purchases. Therefore, by respectfully following our own decision the above case on same identical facts and circumstances, we apply 15% N. P. on bogus purchases claimed by the assessee. It is clarified that by applying 15% N. P., the addition is worked out at ₹ 17,39,682/-. However, we do not have any power to enhance the addition under the law, therefore, we confirm the addition made by the ld Assessing Officer at ₹ 16,08,982/-. - Decided in favour of revenue. Disallowance made on account of ad hoc addition - CIT(A) deleted addition - Held that:- Hon’ble ITAT, Jaipur Bench in the case of Triveni Pharma [2004 (9) TMI 331 - ITAT JAIPUR] had deleted the ad hoc addition. The assessee had filed reasonable explanation before the Assessing Officer and relied on the decision in case of Lal Chand Bhagat Ambica Ram Vs. CIT (1959 (5) TMI 12 - SUPREME Court) and Harish Kumar Vs DCIT (2002 (5) TMI 218 - ITAT HYDERABAD-B ) and prayed to confirm the order of the ld CIT(A).The addition under the head bogus purchases has already been confirmed by this Bench and the ld DR had not controverted the findings of the ld CIT(A). The depreciation is a statutory deduction, therefore, we uphold the order of the ld CIT(A) - Decided against revenue.
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