2012 (1) TMI 218

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..... II, Jaipur dated 06-09-2011 for the assessment year 2007-08. 2.1 The only ground of appeal of the assessee is that the ld. CIT(A) has erred in confirming the trading addition of ₹ 8,99,985/- by disallowing 25% out of alleged unverifiable purchases of ₹ 35,99,940/-. 2.2 The AO during the course of assessment proceedings noticed that the assessee has made purchases to the extent of  .....

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..... d the rejection of books of accounts. The ld. CIT(A) has referred to the order of the ITAT Jaipur Bench in the case of Deepak Dalela Vs. ITO , 50 DTR 502. The ld. CIT(A) has also referred to other orders of the Jaipur Tribunal in which 25% of bogus purchases were not upheld as trading addition. The ld. CIT(A) has noticed that gross profit rate showed by the assessee is only around 1.37% and this i .....

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..... ng balances of the preceding year to the extent of around 25% of bogus purchases. In this case, the payments made and there is no closing balance in the case of 05 parties. The AO in his order has given the gross profit rate disclosed by the assessee for the assessment year under consideration and for the last two preceding years. In the last two preceding years, the gross profit rate was 2.09% an .....

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