TMI Blog2018 (2) TMI 1749X X X X Extracts X X X X X X X X Extracts X X X X ..... owed in such type of cases where bills are taken from hawala dealers, the assessee purchases goods from grey market thereby making some savings in the form of VAT and other levies. The Coordinate Benches of the Tribunal have taken a view that some percentage addition can be made in order to bring to tax the savings that the assessee might have made by purchasing the goods from grey market. In the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 0% addition of bogus purchases made by the AO of ₹ 40,00,753/-. 3. The assessee is in the business of builder and developer. During the course of assessment proceedings, the assessee filed list of parties from whom purchases were made. Thereafter the AO issued notice under Section 133(6) of Income Tax Act, 1961 (hereinafter the Act ) to the said parties. However, the notice issue to M/s. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 'ble Gujarat High Court in the case of CIT vs. Simit P. Sheth 38 taxmann.com 385 wherein the Hon'ble High Court has held that where the sale is accepted by the AO then the entire purchases cannot be added to the income of the assessee. However, the assessee still aggrieved by the order of the CIT(A) preferred an appeal before the Tribunal. 4. We heard the rival submissions and perused t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ge addition can be made in order to bring to tax the savings that the assessee might have made by purchasing the goods from grey market. In the present case the CIT(A) has taken a very reasoned view of the matter by directing the AO to assess the income at 8% of the bogus purchases. We do not find any infirmity in the order of the CIT(A) which is speaking and reasoned one and therefore we uphold t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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