TMI Blog2011 (6) TMI 782X X X X Extracts X X X X X X X X Extracts X X X X ..... day to day stock inventory in terms of lot wise quality and quantity of various items were not furnished. He further observed that in a separate investigation carried out in the case of Haldia group, it was found that large numbers of bogus entities were created to issue accommodation bills without making any purchase or sales. M/s. Amar Gems, The Jewelers Creation and Glorious Gems have been shown as suppliers by the assessee and these names were figuring in the list of such bogus suppliers in the search case of Haldia group. Summons issued under section 131 to these parties at their given addresses were returned back unserved. Similarly survey conducted by BCTT Wing of the department in case of various parties it was found that they were ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of books of account was unjustified. 5. After considering the submissions and perusing the material on record, the ld. CIT (A) noted that AO was not justified in making the addition @ 25% of unverifiable purchases. Rejection of books of account were held as correct as on account of unverifiable purchases the rejection of books was held by the Bench in various cases as correct. Thereafter, the ld. CIT (A) noted that addition, if any, can be made on the basis of past history of the case. After observing these observations, the ld. CIT (A) noted that the assessee has declared g.p. rate of 15.53% against 15.17% shown in the immediately preceding year when sales were only to the tune of ₹ 1,89,95,645/- whereas sales during the year und ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... consistent view that where purchases remained unverifiable, the rejection of books of account are correct. However, simultaneously the Jaipur Benches are also taking a view that addition made @ 25% of the unverifiable purchases are also not justified as if any addition can be made that can be made taking into consideration the past history of the case and taking into consideration the current events of the case. In the present case it is seen that though turnover of the assessee has increased from ₹ 1.89 crores or odd to ₹ 3.34 crores or odd and g.p. rate is also better. However, the fact remains that certain purchases to the extent of ₹ 62,00,000/- or odd remained unverifiable. Therefore, to cover up the leakage of reven ..... X X X X Extracts X X X X X X X X Extracts X X X X
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