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TMI Blog2017 (6) TMI 65X X X X Extracts X X X X X X X X Extracts X X X X ..... (Appeals)-10, Mumbai [hereinafter called CIT(A)] dated 28-09-2016 for AYs 2008-09, 2010-11, 2011- 12, 2012-13, 2013-14 passed against the assessment orders passed u/s 143(3), all 29-01-2016, filed on the following grounds:- "ADDITION ON THE POINT OF BOGUS PURCHASES OF Rs. 11,66,646/- The Ld. Commissioner of Income-tax (Appeals) erred in restricting the addition on the point of bogus purchases to 8% of total purchase amounting to Rs. 1,45,82,956/- i.e. Rs. 11,66,636/- instead of deleting it in toto. Hence we request your honour to delete the addition and obliges." 3. The brief background of the case is that during the year the assessee company was engaged in the business of trading in diamonds. The AO reopened the case on the basis o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eased it to 12.5% of bogus purchases. Accordingly in the assessment order, addition was made @ 12.5% of the alleged bogus purchases of Rs. 1,45,82,956/- which worked about to Rs. 18,22,870/-. 4. Being aggrieved, the assessee filed appeal before CIT(A) wherein detailed submission were made. It was submitted that complete detailed and evidences were furnished to show that purchases were genuine. It was also submitted that the statement made by Mr. Rajendra Jain was made under pressure and therefore, the same was subsequently retracted. However, Ld. CIT(A) did not agree with the submissions of the assessee fully on the ground that assessee had himself made the offer to make addition of the profit element embedded in the amount of bogus purcha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee. It was submitted by him that offer to make addition given to AO was under extreme circumstances due to undue pressure felt by the assessee and was made only to reduce litigation. However, the purchases are genuine. In support of his claim detailed submissions were made by him and brief notes were also submitted. The arguments were made by him in support of his claim that purchases are genuine can be summarized as under: 1. Asses see has all bills of purchases. 2. All payment made thought account payee cheque. 3. Supplier provided all identity to bank following KYC Norms. 4. Assessee has stock register and all quantity is recorded in stock register. 5. All sales of assessee were accepted. 6. Without Purchases sales c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the Ld. CIT(A) @ 8% has led to exorbitant amount of profit which is not possible in this line of business. Therefore, in the interest of justice and fair play, the addition should be computed in fair and justified manner. 7. Per contra, Ld. DR relied upon the orders of lower authorities and requested for upholding the order of Ld. CIT(A). 8. We have gone through the facts and circumstances of the case and orders of the lower authorities and also submissions made by both the sides before us. It is noted that in this case, the assessee himself has offered the addition to be made keeping in view the peculiar facts and circumstances of the case. However, the alternative prayer before us is that the addition should be computed in fair and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hen the amount of addition sustained @ 8% by the Ld. CIT(A) shall be further reduced by the amount of gross profit actually shown on these purchases. The addition shall be sustained on the balance amount. The AO shall give adequate opportunity to the assessee before deciding this ground afresh. Thus, assessee would get part relief. This ground may be treated as allowed for statistical purposes. 9. It has been jointly stated by both the parties that the facts involved in other appeals i.e. for AY 2010-11 (ITA No.7311/M/16), AY 2011-12 (ITA No. 7312/M/16), AY 2012-13 (ITA No. 7313/M/16) and AY 2013-14 (ITA No. 7314/M/16) involve identical facts and circumstances. Therefore, following the directions for AY 2008-09, the grounds raised in these ..... X X X X Extracts X X X X X X X X Extracts X X X X
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