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2018 (4) TMI 255 - AT - Income TaxAddition u/s 69C - unapproved purchases - Held that:- Whole addition on account of non-proving the bogus purchase u/s 69C of the Act doesn’t seem justifiable because sale is not disputed and books of account has not been rejected. In the instant case, the AO conducted the proper verification of the bogus purchase. Notices were given to the parties and the assessee was given an opportunity of being heard before passing the order but the transaction has not been properly proved. Since no new material has come before us, therefore, we are of the view that the bogus purchase to the tune of ₹ 1.33. crores is not doubtful. It is not required to be seen whether the whole addition is required on the part of the assessee or not u/s 69C. See COMMISSIONER OF INCOME-TAX-I Versus SIMIT P SHETH [2013 (10) TMI 1028 - GUJARAT HIGH COURT] End of justice would be met if, the 12.5% of the gross profit ratio of the bogus purchase is liable to be taken into consideration. See COMMISSIONER OF INCOME-TAX-I Versus SIMIT P SHETH [2013 (10) TMI 1028 - GUJARAT HIGH COURT] - We set aside the finding of the CIT(A) on this issue and restricted the addition of bogus purchase to the extent of 12.5% - Decided partly in favour of assessee.
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