TMI Blog2018 (5) TMI 1169X X X X Extracts X X X X X X X X Extracts X X X X ..... ire bringing to tax the profit element so avoided by the assessee. As noted, the Commissioner of Income Tax (Appeals) while limiting the additions, brought the assessee's declared gross profit ratio at the same rate as in the previous year which was even otherwise in tune with the percentage of the assessee's doubtful purchases. - Decided against revenue - R/Tax Appeal No. 379 of 2018 - - - Dated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r had rejected the books of accounts u/s. 145(3), and therefore, GP addition was reasonable without considering the fact that Assessing Officer had not rejected the books of accounts u/s. 145(3) and no such intention is also drawn while giving the final conclusion? 2. The respondent assessee is an individual and is engaged in the business of trading of art silk cloth (domestic and exportimpo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to be made to the parties in Surat under the instructions of GMCPL. It was a trade practice, under which, under the instructions of GMCPL, the assessee had handed over the cheques for purchases made by them to the agents of GMCPL who in turn either passes on the same to GMCPL or to the persons to whom GMCPL has to make payment. 3. The Assessing Officer, however, discarded such explanation. Whi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt payee cheque or bank draft, the Assessing Officer examined the genuineness of such expenditure. He was of the opinion that the assessee would have inflated the purchase expenditure by raising bogus claims. 6. The assessee carried the matter in appeal before the Commissioner. Commissioner was of the opinion that in essence, the Assessing Officer had disputed the expenditure claimed by the ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Commissioner of Income Tax (Appeals). Hence, this appeal. 8. We are broadly in agreement with the view of the Commissioner of Income Tax (Appeals) as confirmed by the Tribunal. When the Assessing Officer had doubted the genuineness of the expenditure, he would require bringing to tax the profit element so avoided by the assessee. As noted, the Commissioner of Income Tax (Appeals) while lim ..... X X X X Extracts X X X X X X X X Extracts X X X X
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