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2024 (4) TMI 586 - AT - Income TaxEstimation of income - bogus purchases - Sales Tax Department has proved beyond doubt that the parties declared as hawala traders were involved in providing accommodation entry of purchases and the assessee was one of the beneficiary of accepting accommodation entry for the purchase - CIT(A) restricted addition to 12.5% of total bogus purchases - HELD THAT:- CIT - A while confirming the addition to the extent of 12.5% of the bogus purchases directed the learned assessing officer to allow deduction of gross profit already returned by the assessee in the regular books of account in respect of purchases made from the said alleged hawala bogus suppliers also. We find that CIT – A has correctly upheld the addition to the extent of 12.5% when the complete stock register showing quantitative details along with undisputed sales are accepted. No infirmity was pointed out by the learned departmental representative that when learned CIT – A has followed the decision of Vishwashakti Construction [2023 (5) TMI 278 - BOMBAY HIGH COURT] and retained the addition to the extent of 12.5% of the bogus purchases correctly - Decided against revenue.
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