TMI Blog2013 (3) TMI 221X X X X Extracts X X X X X X X X Extracts X X X X ..... CIT (Appeal) and the Tribunal, for deleting the said disallowance, placed reliance on the judgment of this Court in the case of Commissioner of Income Tax Vs. Purshottamlal Tamrakar [2003 (3) TMI 10 - MADHYA PRADESH HIGH COURT] wherein held that Section 40A(3) is not applicable when the net profit rate was applied by the AO and once a net profit rate is applied the expenses are deemed to be consid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Briefly stated there was a search at Bharat Kothari Group under Section 132 of the Income Tax Act, 1961 (for short the Act). 2. During the course of search proceedings in the statement, recorded under Section 132 (4) of the Act it was admitted by the proprietors of various firms namely M/s Nikita Steels, M/s Bharat Enterprises, M/s Maa Enterprises, M/s Harsh Enterprises, M/s Saluja Enterprises, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re held by the Assessing Officer to be not genuine. The Assessing Officer, after recording reasons and obtaining necessary approval issued a notice under Section 148 to the assessee and initiated the proceedings. 4. The Assessing Officer completed the assessment under Section 143 (3)/148 of the Act and vide his order dated 27.12.2010 disallowed 20% of the purchase price alleged to be paid in cas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l upheld the decision of the CIT (Appeal) in regard to the said disallowance. 7. Aggrieved by the order of CIT (A) and the Tribunal the revenue is in appeal. 8. We find that the CIT (Appeal) and the Tribunal, for deleting the said disallowance, placed reliance on the judgment of this Court in the case of Commissioner of Income Tax Vs. Purshottamlal Tamrakar 270 ITR 314. We find that in the sai ..... X X X X Extracts X X X X X X X X Extracts X X X X
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