TMI Blog2015 (10) TMI 2420X X X X Extracts X X X X X X X X Extracts X X X X ..... PER R.P. TOLANI, JM This is an appeal filed by the assessee against the order of the ld. CIT(A)-1, Alwar dated 06-01-2014 for the assessment year 2009-10 wherein the assessee has raised following grounds:-. 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 rejection of books of account of the appellant by the AO on the ground that purchases of ₹ 14,30,963/- made by the appellant are not genuine and are not verifiable. 2. That the ld. CIT(A) is further wrong and has erred in confirming trading addition of ₹ 3,57,741/- made by the AO on account of alleged unverifiable purchases referred to in Ground No. 1() above. 2.1 Brief facts of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essee to produce these parties for examination along with all the books of account and bank account concerning the purchases but the assessee failed to produce these parties along with the details desired by the AO. Ld. AO rejected the books of account u/s 145(3) of the Act and to made addition of ₹ 3,57,741/- qua the unverifiable purchases of ₹ 14,30,963/- in view of the decision of Hon'ble Gujarat High Court in the case of Sanjay Oil Cake Industries vs. CIT (2008) 10 DTR 153 and ITAT Ahemdabad decision in the case of Vijay Proteins Ltd. 58 ITD 428. 2.2 Being aggrieved by the order of the AO, the assessee carried the matter before the ld. CIT(A) who has dismissed the appeal of the assessee by following observations. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .22% respectively. It is further noted that even after the addition of ₹ 3,57,741/- made by the AO the gross profit rate is less than what was declared in immediately preceding two years. Therefore, I do not find any reason to interfere with the order of the AO on this issue. In the result, the appeal is dismissed. 2.3 The ld. AR of the assessee during the course of hearing submitted that the assessee furnished complete details of purchases which included the copies of purchase bills, confirmations, RST/CST No. of the supplier, PAN of the supplier, Proof of payments made against purchases through account payee cheques duly debited and credited in the bank accounts of supplier and the assessee respectively. The ld. AR of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tions of both the parties and perused the material available on the record. As discussed in above cases, the material available on record established that in Jaipur, a rampant practice is in vogue to get and issue accommodation bills of purchases to deflate the profit. The learned Assessing Officer made disallowance @ 25% of such bogus purchases on the basis of decision in the case of Sanjay Oil Cake Industries and Vijay Protein Ltd. (supra). In our view the 25% disallowance appears to be higher side, therefore, keeping in view of the facts of the assessee s case as well as other cases as discussed above, we feel that 15% disallowance out of bogus purchases is reasonable on unverifiable purchases and will meet the ends of justice. The rejec ..... X X X X Extracts X X X X X X X X Extracts X X X X
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