TMI Blog2018 (11) TMI 785X X X X Extracts X X X X X X X X Extracts X X X X ..... nue : Shri Sanjeev Ghai ORDER PER D. KARUNAKARA RAO, AM There are two sets of cross appeals. ITA Nos. 640 641/PUN/2016 are filed by the assessee and ITA Nos. 1479 and 1496/PUN/2016 are filed by the Revenue against separate orders of CIT(A)-2, Pune, commonly dated 01-02-2016 for the A.Yrs. 2009-10 and 2010-11 respectively. Identical grounds have been raised by the assessee and Revenue in these appeals. Therefore, these appeals were clubbed together and are being adjudicated in this composite order. Cross Appeals for the A.Y. 2009-10 2. We shall first take up the appeal of the assessee ITA No.640/PUN/2016 for the A.Y. 2009-10 as the standard one. 3. Briefly stated, relevant facts of the case includ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e learned CIT(A) was not justified in confirming the addition of ₹ 14,80,110/- on account of gross profit on purchases of ₹ 98,67,398/- without appreciating that the assessee had furnished all the particulars of purchases and sales along with details of quantity and the assessee had not earned any profit on these purchases which was not recorded in the books of account. 2. The learned CIT(A) was not justified in sustaining addition of ₹ 14,80,110/- only on the basis of presumption and surmises and without having any material to support his conclusion. 3. The above grounds of appeal are without prejudice to one another. 4. The appellant craves leave to amend or alter any of the above grounds or to add new ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ell. In the case of the appellant as well, it has been able to file evidences reflecting that purchases were there although from some other parties and not from the parties as shown in the books of account, from whom just bills obtained. There are corresponding sales also. Accordingly following the ratio of this decision, it cannot be said that entire purchases of ₹ 98,67,398/- is disallowable. I accordingly hold that the appellant is taxable on the amount of gross profit which has arisen out of such purchases for which bills have been procured from local parties. The average rate of G.P. shown by the appellant during the preceding years is between 10% to 11%. Considering the additional benefit on account of VAT credit on these purc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bills were obtained. There are corresponding sales also. Accordingly, following the ratio of this decision, it cannot be said that entire purchases of ₹ 50,43,126/- is disallowable. I accordingly hold that the appellant is taxable on the amount of gross profit which has arisen out of such purchases for which bills have been procured from local parties. The average rate of G.P. shown by the appellant during the preceding years is between 10% to 12%. Considering the additional benefit on account of VAT credit on these purchases (a fact which has been admitted by the appellant), I consider it fair and reasonable to estimate Gross Profit at the rate of 15% on the amount of purchases of ₹ 50,43,126/-, for which admittedly bills hav ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by Revenue - ITA No.1479/PUN/2016 A.Y. 2009-10 8. Since we have approved the view taken by the Ld.CIT(A) dismissing the grounds raised by the assessee, we find adjudication of grounds raised by the Revenue becomes an academic exercise. Thus, the grounds raised by the Revenue are dismissed. 9. In the result, the appeal of the Revenue is dismissed. ITA No.641/PUN/2016 By Assessee ITA No.1496/PUN/2016 By Revenue A.Y. 2010-11 10. The grounds raised in the Cross Appeals, the facts/issues, decision of AO/CIT(A), arguments of the parties are similar to that of A.Y. 2009-10. Therefore, following the parity of reasoning given in A.Y. 2009-10, we dismiss the grounds raised by both the Assessee as w ..... X X X X Extracts X X X X X X X X Extracts X X X X
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