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2024 (6) TMI 1286 - AT - Income TaxEstimation of income - bogus purchases from non-existent vendor s - CIT(A) restricting the disallowance to 25% of purchases - HELD THAT - AO has made the addition of 100 percent of the bogus purchases as addition to the income of the assessee by invoking the provisions of section 69C of the act despite the assessee showing the purchase invoices name and address of the parties producing the books of accounts payments made by the banking channel. Merely because the notices issued to the supplier u/s 133 (6) could not be served by the AO and further the assessee failed to produce the owner of M/s Rishabh Enterprises the learned assessing officer made the addition to the extent of hundred percent of such bogus purchases. CIT-A upon the decision of M/s Vijay Proteins Limited 2015 (1) TMI 828 - GUJARAT HIGH COURT retained the addition only to the extent of 25% of bogus purchases. We find that in the case of NK proteins 2016 (6) TMI 1139 - GUJARAT HIGH COURT followed the decision of M/s Vijay Proteins Ltd and further in both the cases the addition was restricted to the extent of 25% of the bogus purchases only. Therefore the grounds of appeal preferred by AO are misplaced - no infirmity in the order of the CIT A in restricting the addition of bogus purchases to the extent of 25% of such bogus purchases. Appeal of revenue dismissed.
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