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2018 (4) TMI 386 - AT - Income TaxAddition of bogus purchase - Held that:- It is a case of bogus purchase in which the addition was made on account of information received from the Sales Tax Department, Maharashtra Government. Subsequently, the notices were given to the parties u/s 133(6) of the Act which were not served. The notice was given to the assessee who failed to prove the genuineness of the transaction. Anyhow sale is not disputed and books of account are not rejected. The matter was controversy has been adjudicated by Hon’ble Gujarat High Court in the case of Simit P Sheth (2013 (10) TMI 1028 - GUJARAT HIGH COURT) in which the profit ratio @ 12.5% was taken into consideration on the basis of the GP of the assessee. Addition of purchases - Held that:- The assessee has placed reliance upon the copy of bill of the Ajay stone. The assessee also placed reliance upon the copy of bills of M/s. Top Brick and Sand suppliers. The assessing officer is hereby directed to examine this fact in the light of the evidence adduced by the assessee by giving an opportunity of being heard to the assessee. Needless to say that if this addition has already been added the assessment year of 2009-10 then the same is not liable to be the part of the total amount to the tune of ₹ 57,96,338/-. The said addition would be double addition. The said amount after verification would be liable to be excluded from the amount of ₹ 57,96,338/- for the purpose of deciding the profit ratio @ 12.5% which has been adjudicated at the time of adjudication upon the issue no. 1 to 4. Accordingly, this issue is decided in favour of the assessee against the revenue.
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