TMI Blog2015 (7) TMI 203X X X X Extracts X X X X X X X X Extracts X X X X ..... effective grounds of appeal are as under:- 1 That on the facts and in the circumstances of the case the Ld. CIT(A) is wrong, unjust and has erred in law in confirming finding recorded by the Assessing Officer that purchase of ₹ 10040088/- made by the appellant are not verifiable. 2. The Ld CIT(A) is further wrong and has erred in law in upholding rejection of books of accounts of the appellant by the Assessing Officer U/s 145(3) of the IT Act, 1961 and in further confirming trading addition to the extent of ₹ 2510022/- made by the Assessing Officer by upholding disallowance of 25% of above alleged unverifiable purchase. 3. That the Ld. CIT(A) is wrong and has erred in law in confirming addition of ₹ 25100/- to the income of the appellant on account of alleged commission paid on purchases of ₹ 10040088/- referred to in ground No. (1) above. 4. That the Ld. CIT(A) is further wrong and has erred in law in confirming disallowance of ₹ 93347/- being 1/5 of depreciation and insurance of car on account of alleged personal use. 5. That the appellant craves the permission to add or to amend to any of ground of appeal or to withdraw ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 008 2,68,412/- 454 M/s Gems Ocean 3/4/2007 9,82,917/- 724 M/s Gems Ocean 3/1/2008 3,23,891/- 763 M/s Gems Ocean 5/2/2008 2,62,925/- 125 M/s Raj Shree Gems 25/8/2007 3,25,752/- 53 M/s V.S. Jewellers 2/6/2007 7,08,561/- 6 M/s Vijay Gems 4/4/2007 7,26,762/- 8 M/s Vijay Gems 4/6/2007 9,60,040/- 47 M/s Vijay Gems 2/7/2007 2,15,622/- 110 M/s Vijay Gems 1/10/2007 1,57,278/- 04 M/s Subhlaxmi gems 4/4/2007 7,41,760/- 06 M/s Subhlaxmi Gems 06/04/2007 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... /- and made trading addition of ₹ 30,12,026/- to the income of the assessee. Regarding commission payment, the ld Assessing Officer observed that it was admitted by the respective parties that they charged commission of .20% to .25% for the bogus purchase bills issued. Accordingly, in the case of it is clear that it had made commission payment of ₹ 25,100/- on the total bogus purchase of ₹ 1,00,40,088/-. Assessee failed to furnish any documentary evidence and source of such commission payment, hence the same is taxed in the hands of its income as payment made out undisclosed sources. The ld Assessing Officer observed that the assessee had concealed the particulars of his income and furnished inaccurate particulars of income by reducing its gross profits, therefore it is a fit case for initiating penalty proceedings U/s 271(1)(c) of the IT Act, which was being done separately. With regard to another ground i.e. on account of vehicle expenses, ld Assessing Officer observed that on perusal of computation of total income, it is noticed that assessee had added an amount of ₹ 70,516/- on account of vehicle expenses considered personal. On perusal of deprecia ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... legal position under consideration, particularly considering the ratio decindi of the above cited cases, the disallowance of 25% out of the bogus as well as unverifiable purchases totaling to ₹ 1,00,40,088/- is upheld, which comes to ₹ 25,10,022/- and balance addition of ₹ 5,02,004/- is deleted. The ld CIT(A) has further held regarding commission payment as under:- I have considered the submission of ld. AR and have perused the material on record. It has already been held that various parties as mentioned in the preceding paras had given bogus bill to the appellant by charging commission at the rate of .25%. Accordingly, the Assessing Officer was justified in adding ₹ 25,100/- as commission payment from undisclosed sources . The ld CIT(A) has further held regarding insurance payment of car as under:- I have considered the submission of ld. AR and have perused the material on record. It is settled legal position that in case of proprietory business or firm, if the vehicle is not fully and exclusively utilized for the purpose of business, then proportionate disallowance of depreciation need to be made part from disallowance out of vehicle ..... X X X X Extracts X X X X X X X X Extracts X X X X
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