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2017 (10) TMI 771 - AT - Income Tax
Bogus purchase - disallowance at the rate of 25% of the hawala purchase - Held that:- In the present appeal, the assessee, before AO as well as before the CIT (Appeal) duly furnished the ledger account, Bank statement of suppliers, item-wise quantitative details. While adjudicating the case of the assessee, the Ld. Commissioner of Income Tax (Appeal) has already analyze the details/factual matrix as is evident from para 8.11 onwards of the impugned orders.
AO made the addition of the total amount but the Ld. AO was of the view that the disallowance at the rate of 25% of the hawala purchase will be reasonable, which is more than the suppressed production. The assessee has also not filed any appeal against the impugned order. The assessee duly co-related the sale and purchases by declaring GP @ 9.76% of the purchases. CIT(Appeal) has already restricted the disallowance to 25%, thus, we find no infirmity in his conclusion. The interest of Revenue under the material facts has already been safeguarded, therefore, the stand of the Ld. Commissioner of Income Tax (Appeal) is affirmed. Finally, the appeal of the Revenue is dismissed.