TMI Blog2017 (11) TMI 1348X X X X Extracts X X X X X X X X Extracts X X X X ..... purchases should be made at 6%. As far as the decision relied upon by the learned Authorised Representative we are of the view that since, what should be the profit rate in a particular case is a purely factual issue, the decision having been rendered in its own factual context will not apply. Accordingly, we direct the Assessing Officer to disallow 6% of the alleged bogus purchase. Ground is partly allowed. - ITA no.5825/Mum./2016 And ITA no.6725/Mum./2016 - - - Dated:- 22-11-2017 - SHRI SAKTIJIT DEY, JUDICIAL MEMBER AND SHRI G. MANJUNATHA, ACCOUNTANT MEMBER For The Assessee : Shri Vijay Kumar S. Biyani For The Revenue : Shri Ram Tiwari ORDER PER SAKTIJIT DEY, J.M. Aforesaid cross appeals arise out of orde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in Group were providing accommodation entries and the assessee is one of the beneficiaries of such accommodation entries in the financial year relevant to the assessment year 2012 13. As per the information available on record, the Assessing Officer found that in the relevant previous year the assessee had taken accommodation entries to the tune of ₹ 10,14,68,721 from four parties. He, therefore, called upon the assessee to prove the genuineness of purchases. As alleged by the Assessing Officer, the assessee could not prove the purchase of diamond from the concerned parties by producing delivery challans, etc. Though, the assessee submitted the day to day stock register and quantitative details of purchases and sales to prove that pur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 44,062. 5. Learned Authorised Representative submitted, the assessee has maintained regular books of account including day to day stock register and has proved the purchase and sale of goods by furnishing quantitative details. He submitted, the Assessing Officer without making any enquiry independently has simply relied upon the information received from the Investigation Wing and has concluded that the assessee has purchased the goods from grey market and not from the concerned parties. He submitted, without bringing any adverse material that the purchases are not genuine the Assessing Officer was not justified in disallowing 8% out of the purchases. He submitted, the assessee has shown gross profit margin of about 10% and the net profi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... with the evidence submitted by the assessee disallowed 8% out of the purchases made from the concerned parties. On a perusal of the impugned assessment order, we find that apart from relying upon the information available on record as a result of search and survey operation in Bhawarlal Jain Group, the Assessing Officer has not conducted any independent enquiry of his own to find out the genuineness of purchases made from the concerned parties. It is also a fact on record that the Assessing Officer admits that goods corresponding to the alleged bogus purchase made from four parties have entered the stock of the assessee and assessee has been able to co relate such purchases with sales with quantitative details. The Assessing Officer has als ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ond manufacturing and trading has been fixed at 6%. However, the percentage referred to in BAP reports or CBDT circular are for transaction under normal circumstances, hence, cannot apply to unproved purchases. Thus, in our view, since, the assessee has failed to prove the genuineness of purchases from concerned parties disallowance on the alleged bogus purchases should be made at 6%. As far as the decision relied upon by the learned Authorised Representative we are of the view that since, what should be the profit rate in a particular case is a purely factual issue, the decision having been rendered in its own factual context will not apply. Accordingly, we direct the Assessing Officer to disallow 6% of the alleged bogus purchase. Ground i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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