TMI Blog2012 (2) TMI 548X X X X Extracts X X X X X X X X Extracts X X X X ..... .MOHAN ALANKAMONY, HON BLE A.M.) For the Petitioner : Shri Samir Tekriwal, Sr.D.R. For the Respondent : Shri Tushar P. Hemani, A.R. ORDER PER SHRI A.MOHAN ALANKAMONY, ACCOUNTANT MEMBER : These are three appeals (i) one by the Revenue and (ii) another two by the assessee are directed against the impugned order of the ld. CIT(A)-V, Baroda in Appeal No. CAB/(A)-V/309/2006-07 Appeal No.CAB/(A)-V/203/2007-08 all dated 30.10.2009 for the assessment year 2003-2004 and 2004-05 respectively passed under section 250 r.w.s.143(3)/147 of the I.T. Act. I) ITA NO.3407/Ahd/09 : A.Y. 2003-04 By the Department: 2. A solitary ground of the Revenue is that the ld.CIT (A) erred in deleting the addition of ₹ 4 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssment u/s 143(3) r.w.s 147 of the Act, determining the total income of the assessee at ₹ 62,48,710/- for the reason recorded in his impugned order. 5. On an appeal by the assessee, the ld.CIT (A) has, after due consideration of the assessee s contentions as well as the perusal of the remand report of the AO on the issue and for the detailed reasons recorded therein, observed thus: 5.5.2. However, as per various decisions of ITAT such as Vijay Proteins Ltd. 58 ITD 528, entire cost of purchases cannot be added in such cases. This view is also supported by the judgments of ITAT in the cases of Omkar Pharma, Shree Raj Industries, Amit Processors, Prem Kumar Rathi etc., 5.5.3. Taking into account all the relevant facts of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eport; (iii) invoices of purchases and sales and also delivery challans (iv) ledger account of supplies etc., to strengthen his point of argument. 7. We have carefully considered the rival submissions, thoroughly perused the relevant case records and the voluminous paper book furnished by the Ld. A R during the course of hearing. At the outset, we would like to recall the findings of the earlier Benches on a similar issue. (i) ACIT, Central Circle 1(4) v. Mardia Copper Extrusion Pvt. Ltd in ITA NO.4290/Ahd/1995 AY 1992-93: After taking into account the rival submissions and also the reasoning of the CIT (A), the Bench had observed thus: 32. It only remains for us to consider, the rather unusual observation, if we may say ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... orded the detailed finding so as to establish that the purchases claimed to have been made from Girnar Sales Corporation and Shiv Metal Corporation was bogus. The learned counsel for the assessee was unable to controvert the factual finding recorded by the AO in this regard. However, there is no dispute that the assessee is only a trader in iron and steel and it has maintained quantitative details. The statement made by the learned counsel that the purchases claimed to have been made by the assessee from Girnar Sales Corporation and Shiv Metal Corporation is duly recorded in the books of the assessee and has been reflected either in the sales or in the closing stock, is not controverted. On these facts, the decision in the case of Kulubi St ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... emed it fit to sustain the disallowance for a lump-sum amount of ₹ 50000/-. However, we find that in the case of Shri Anubhai Shivlal (supra), the ITAT has considered both the decisions in the case of Vijay Proteins and Sun Steel (supra) and thereafter sustained the disallowance at 12.5%. Relevant findings of the ITAT in the case of Anubhai Shivlal read as under: 3.At the time of hearing before us, it is submitted by the learned counsel that the addition sustained is excessive. In support of this contention he referred to the decision of the Tribunal in the case of ITO v. Sun Steel 92 TTJ (Ahd) 1126 wherein the Tribunal has sustained the addition of ₹ 50,000/- on account of bogus purchases. However, we find that the facts ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e facts of the assessee s case. We, therefore, do not find any justification to interfere with the order of the CIT (A) in this regard. The same is sustained. After considering the facts and the arguments of both the sides, we are of the opinion that it would meet the ends of justice, if the disallowance is sustained at 12.5% of the purchase from these two parties. The assessing officer is directed to work out the disallowance accordingly. Since the facts of the assessee s case are identical, we respectfully following the above decision of the ITAT, direct the assessing officer to disallow 12.5% of the purchase made during the year under consideration . 7.1. Taking into account the facts that the present assessee who has ..... X X X X Extracts X X X X X X X X Extracts X X X X
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