TaxTMI 
TaxTMI 
2019 (1) TMI 632
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....sessee is directed against the order dated30.11.2016 passed by the CIT(A)-41, Mumbai and it relates to A.Y. 2006-07. The assessee is aggrieved by the decision of the CIT(A) in partially confirming the addition related to bogus purchases. 2. The assessee is a manufacturer of drugs and pharmaceuticals. The Revenue received information from the Sales Tax Department of Government of Maharashtra that ....
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....by using chemicals purchased from both the parties and have exported the same. Accordingly it was pointed out that there is no reason to doubt the genuineness of the purchases. The AO was not convinced with the explanation of the assessee. Accordingly he disallowed the entire amount of Rs. 70.34 lakhs and added the same to the total income of the assessee. 3. In the appellate proceedings, the lea....
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....rted its goods and hence the goods could not have been manufactured with outusing material purchased from the impugned dealers. Accordingly the learned A.R. submitted that there is no reason to sustain the addition partially also. 5. On the contrary, the learned D.R. submitted that the assessee has failed to furnish any evidence to prove receipt of materials and its consumption. The assessee has ....
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....by the CIT(A) is on the higher side and accordingly prayed that it may be reduced. She submitted that the Hon'ble Gujarat High Court in the case of CIT vs. Simit P. Sheth 356 ITR 451 has sustained the addition to the extent of 12.5%. The learned D.R. submitted that 12.5% estimated by the Hon'ble Gujarat High Court included profit element of 2.5%. 7. Having heard the rival submission, we a....