TMI Blog2016 (12) TMI 1630X X X X Extracts X X X X X X X X Extracts X X X X ..... ble income in the case of the appellant. - ITA No. 1337/Ahd/2012 & CO No. 137/Ahd/2012 - - - Dated:- 7-12-2016 - SHRI R.P. TOLANI, JUDICIAL MEMBER AND SHRI AMARJIT SINGH, ACCOUNTANT MEMBER Revenue by : Shri James Kurian, Sr DR Assessee by : Shri M.K. Patel, AR O R D E R PER R.P. TOLANI, JUDICIAL MEMBER:- This appeal by the Revenue and the Cross-objection thereof filed by the assessee are directed against the order of the Commissioner of Income- Tax (Appeals), Valsad dated 30.03.2012 for AY 2009-10, raising respective part relief on the same issue. 2. The sole ground raised by the Revenue reads as under:- On the facts and circumstances of the case and in law the learned CIT(A) has erred in deleting the disa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... received by way of cheques from the paper mills and it is unthinkable that there will be physical sale of goods without there being corresponding quantity of purchase of waste-paper. The ld. AO rejected the books of accounts and disallowed 15% of total purchases as unverifiable and the addition was made. The ld. CIT(A), though upheld the view of the Assessing Officer that the purchases were not substantiated in the way ld. Assessing Officer required; however, directed the Assessing Officer to adopt the NP at the rate of 2% for determining the taxable income, by following observations:- 5.2 Further it was also brought to my notice that in the Central Circle, Surat (dealing with search assessments) similar cases were assessed during the c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... traders like the appellant acting as conduits for tax planning on behalf of the paper mills. The AO himself has observed that the purchase price is fixed by the GPMA. The traders like the appellant are dependent upon a few paper mills for their business. In view of this facts I am unable to agree with the AO that an adhoc addition of 15% of the purchase value shall be made the determine the fair quantum of taxable profit. 5.4 As pointed out by the appellant the Central Circle Surat has completed the assessment of similar traders by estimating the gross profit and enhanced the rate between 0.5% to 0.75 % being the facts similar to the appellant. This indicates that this trading activity is high volume low margin business. I have also spar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Vapi. 4.2 Ld. Counsel for the assessee then contends that since similar additions were made in several other cases, the appeals have been coming to ITAT on the same issue in the case of Tayab Yunus Barudgar for AY 2009- 2010 in ITA No.1351/Ahd/2012 and CO No.155/Ahd/2012, wherein the ITAT vide order dated 27.05.2016 upheld the order of CIT(A) by following observations:- 4. We have heard the Ld.DR, perused the material available on record and gone through the orders of the authorities below. We find that the ld.CIT(A) while deciding the issue in favour of assessee has given a finding that though the AO has doubted the purchases but has not brought on record any instance of bogus or inflated purchase and has also not doubted the sal ..... X X X X Extracts X X X X X X X X Extracts X X X X
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