9911796707
TMI Blog2018 (9) TMI 779X X X X Extracts X X X X X X X X Extracts X X X X ..... section 143(3) read with section 147 of the Income Tax Act, 1961 (hereinafter 'the Act'). 2. The only issue in this appeal of assessee is against the order of CIT(A) restricting the disallowance of bogus purchases at the rate of 15% and confirming the disallowance at Rs. 3,42,090/- out of the total bogus purchases of Rs. 22,80,601/-. For this assessee has raised the following ground No. 1:- "1. On the facts and circumstances of the case and in law the CIT(Appeals) was justified in confirming a disallowance of Rs. 3,42,090/- being 15% of the alleged bogus purchases amounting to Rs. 22,80,601/-." 3. Briefly stated facts are that the assessee is engaged in the business of dealing in gift items. The AO received information from DGIT (Inves ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... forts beyond getting information from Investigation Wing. AO has afforded opportunities to the appellant to produce the parties. The AO issued notices u/s 133(6) of the Act to the parties that did not reveal that claim of the appellant is not genuine. In the appellate proceedings, appellant failed to produce any evidence like weightment slips for transportation of goods. The next aspect to consider is the claim of the appellant that the purchases were made from the alleged supplier. Here, it is relevant to take into account that the enquiries conducted by the Sales Tax Department as well as the Investigation Wing of Income Tax Department/the Assessing Officer have established that the said suppliers are not genuine. The said parties were no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e. 3,42,0901-. Appellant gets relief of Rs. 2,28,0601-. The grounds of appeal are partly allowed. This will ensure that only the real income gets subjected to tax and not a notional income or an exaggerated amount determined in an arbitrary manner." 5. We have considered the issue and gone through the facts and circumstances of the case. We find from the facts of the case and argument of both the sides, that the CIT(A) has applied the profit rate at the rate of 15%, which according to us is on higher side going by the nature of business of the assessee i.e. dealing in gift items. Further, the learned Counsel pointed out that it is showing higher gross profit rate consistently and for this he referred to the comparative chart of GP as unde ..... X X X X Extracts X X X X X X X X Extracts X X X X
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