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2022 (5) TMI 222 - AT - Income TaxRejection of books of accounts - HELD THAT:- We find that no specific submission against rejection of books of account was made by learned AR of the assessee. Thus, the rejection of books of account is affirmed. Bogus purchases addition to the extent of 5% - HELD THAT:- It is a settled law that in case of disputed purchases shown from such hawala dealer’s only profit element embedded in such transaction is to be disallowed, to avoid the possibility of revenue leakage and not the substantial part of transaction. No doubt, the Assessing Officer identified the purchases of Rs. 2.15 crores shown from hawala dealers, the assessee may have shown other transaction with some other parties. However, the assessee has offered a meagre income of Rs. 17,76,610/- for taxation, thus the assessee was shown an extremely low profit. The combination of this bench in other similar cases wherein the purchases are shown from Bhanwarlal Jain or Rajendra Jain or Gautam Jain group have restricted or enhanced the addition to the extent of 6% of such amount or disputed purchases. Therefore, taking a consistent view, the disallowance which was restricted to the extent of 5% by learned CIT(A) are increased to 6% of the impugned purchases of Rs. 2.15 Crores. Assessee appeal dismissed.
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