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2018 (2) TMI 346 - AT - Income TaxAddition u/s 69C to 12.5% of the alleged bogus purchases - Held that:- Considering assessee’s appeal on identical issue of estimation of profit on alleged bogus purchases for the very same assessment year the Tribunal though, upheld the estimation of profit on alleged bogus purchases @ 12.5%, however, directed the Assessing Officer to reduce the gross profit already declared by the assessee from the profit to be estimated at 12.5% of the bogus purchases. The learned Departmental Representative also agreed with the aforesaid submissions of the assessee. As could be seen from the material on record, while deciding assessee’s appeal arising out of the impugned order of the Commissioner (Appeals) the Tribunal has directed the AO to adopt the profit rate on alleged bogus purchases @ 12.5% and thereafter reduce the gross profit already declared by the assessee to quantify the disallowance on account of alleged bogus purchases. Addition on account of difference in closing and opening stock - Held that:- Neither before the Assessing Officer nor before the first appellate authority the assessee appeared and reconciled the difference in closing and opening stock with supporting evidence. Therefore, there were no other options before the Departmental Authorities but to treat the difference between the closing and opening stock as income of the assessee. However, considering the submissions of the learned Authorized Representative that given an opportunity the assessee will be able to reconcile the difference in closing and opening stock with supporting evidence, we are inclined to restore the issue to the file of the Assessing Officer for de novo adjudication after providing due opportunity of being heard to the assessee. This ground is allowed for statistical purposes.
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