TMI Blog2017 (12) TMI 812X X X X Extracts X X X X X X X X Extracts X X X X ..... essee had submitted cash book after properly recording the entries and submitted the same with the paper book. However, the Assessing Officer has not been able to pinpoint any defect in the complete cash book furnished by the assessee. Under the circumstances, when no defects could be pointed out by the AO in the cash book furnished by the assessee, no infirmity can be found in the reasoning adopted by the Tribunal while deleting such addition. Resultantly, the second question, as proposed by the revenue, also does not merit acceptance. - MR. HARSHA DEVANI AND MR. A.S. SUPEHIA, JJ. For The Appellant : Mrs Mauna M Bhatt, Advocate COMMON ORAL ORDER ( PER : HONOURABLE MS.JUSTICE HARSHA DEVANI) 1. By these appeals unde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sana and Sabarkantha Districts of Gujarat on 1.9.2008 and subsequent dates. Survey action under section 133A of the Act was also carried out in the case of M/s. Om Shri Nagraj Ginning Factory, Proprietor Rameshchandra Ganpatbhai Mistry (the assessee herein). The assessee filed its return of income for assessment year 2008- 09 on 30.9.2009 declaring total income at ₹ 3,40,250/-. The case was selected for scrutiny and notice came to be issued under section 143(2) of the Act. 4. During the course of assessment proceedings, the Assessing Officer noticed that M/s. Vishal Traders, Virpur had issued bogus/adjustment bills to a large number of concerns of Mehsana and Patan districts of Gujarat during financial year 2006-07 onwards. A state ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mers/unregistered dealers who do not issue bills. The Commissioner (Appeals) was of the view that the contention of the assessee had to be accepted because consumption of quantity and sales status had not been challenged by the department. He, accordingly, was of the view that the case was covered by the decision of the jurisdictional High Court in the case of Sanjay Oil Cake Industries , 316 ITR 274 (Guj.) and, accordingly, directed the Assessing Officer to restrict the bogus purchases addition from M/s. Vishal Traders and Nagraj Traders to 25% of ₹ 5,55,08,975/-. 6. The assessee carried the matter in appeal before the Tribunal, which found that the purchases from M/s. Nagraj Traders aggregated to ₹ 4,16,53,209/- and no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ase. It was submitted that when the Commissioner (Appeals) had estimated the addition on account of bogus purchases at 25%, the Tribunal ought not to have reduced the same to 5%, without assigning any specific reason therefor. 8. The facts are not in dispute. The purchases made from M/s. Vishal Traders and M/s. Nagraj Traders, undisputedly are bogus purchases made to regularise the purchases made from farmers and small traders who do not issue bills. However, it is also undisputed that the assessee has shown sales, closing stocks and consumption details of such purchases. 9. Therefore, the only question that arises is as to what extent the addition should be made in respect of bogus purchases. The Commissioner (Appeals) has estimated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Officer to ₹ 22,27,000/- which were not reflected in the e-cash book impounded during the survey proceedings. Before the Tribunal, it was submitted by the assessee that before the CIT, prior to the Assessing Officer furnishing the remand report dated 16.4.2012, the assessee had submitted submissions dated 13.3.2012, wherein it was explained that such cash deposits were made out of available cash balance on the given date and hence, no such deposits could be treated as unexplained. It was submitted that while preparing reconciliation of bank accounts with the cash book and while finalizing the books post impoundment of hard-disc, it came to the knowledge of the assessee that such cash deposits have not been recorded in the books and, a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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