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TMI Blog2017 (8) TMI 194X X X X Extracts X X X X X X X X Extracts X X X X ..... JUSTICE AKIL KURESHI) 1. Tax Appeal No.410 of 2017 is filed by the Revenue to challenge the judgment of the Income Tax Appellate Tribunal dated 14.03.2016 raising following questions for our consideration: "[A] Whether the Appellate Tribunal has erred in law and on facts in restricting the disallowances of bogus purchases to 8% of the total purchase ? [B] Whether the Appellate Tribunal has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed, the assessee has not disclosed such sum. The Assessing Officer in the order of assessment, added both the amounts i.e. the bogus purchases of Rs. 5.66 crores and declared amount of Rs. 61.05 lakhs in the statement of the assessee. The assessee carried the matter in appeal. Commissioner (Appeals) held that such purchases were bogus. Detailed discussion was made and reasons were cited for this. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essee argued that the entire lot of purchases cannot be treated as bogus. 3. The Commissioner (Appeals) while holding that the purchases were not backed by documents and bills and were therefore bogus, accepted the assessee's contention that the entire amount of purchases cannot be added back to the income of the assessee. Referring to the decision of this Court in case of Sanjay Oilcake Indu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sustaining the findings of the Commissioner of Income Tax (Appeals) recording bogus purchases, reduced the addition to 8% thereof from the standard of 25% adopted by the Commissioner of Income Tax (Appeals). The Tribunal confirmed the view of the Commissioner of Income Tax (Appeals) of not separately taxing the sum of Rs. 61.05 lakhs as admitted by the assessee in the statement recording during su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mation and gross work is always inbuilt. The assessee had pointed out that without the additions, the gross profit for the year under consideration was approximately 7%. The Tribunal therefore, did not commit any error in accepting the gross profit rate of 8% on the purchases which was otherwise found not genuine. 8. No question of law arises. The disclosure of Rs. 61.05 lakhs made by the assesse ..... X X X X Extracts X X X X X X X X Extracts X X X X
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