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2015 (12) TMI 378 - AT - Income TaxAddition u/s 69 - purchases were made from undisclosed/unverifiable/unidentifiable parties in the grey market by investing in cash and the purchases from the group concerns of Shri Rakeshkumar Gupta & family were only accommodation entries and not actual purchases - Held that:- The assessee before the AO vide letter dated 26th August, 2010 have submitted the entire quantitative details of opening stock, purchases, sales made during the year and closing stock, the details of which have already been noted above. The assessee in support of the entries of purchases and sales has produced, purchase bills sales bills and quantitative tally in which no defect has been pointed out. On these facts and also once the very basis of information that assessee was engaged in getting accommodation bill from Rakeshkumar Gupta has been denied by the Rakeshkumar Gupta and its concerns then, there remains no basis for making any addition on account of bogus purchases.If the opening stock, closing stock, sales, gross profit have not been disturbed and quantitative details of purchases are fully verifiable, then no addition on account of purchases can be made. Thus, the finding of the CIT(A) to this extent is upheld. However, the Ld. CIT(A) has went step further and made an addition of 10% on account of gross profit on such alleged purchases on the ground that such an addition will cover whatever little discrepancy is there in the trading account. Thus, we do not find any reason to deviate from such conclusion of Ld. CIT(A) accordingly, ground raised by the revenue is dismissed. - Decided in favour of assessee.
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