TMI Blog2019 (1) TMI 738X X X X Extracts X X X X X X X X Extracts X X X X ..... are of the view that the estimate of profit at 25% is on the higher side. Hence on the conspectus of the matter, we are of the view that this issue may be put to rest, if the addition is sustained to 12.50% of the value of bogus purchases. Accordingly, we modify the order passed by the learned CIT(A) and direct the A.O. to sustain the addition to the extent of 12.50% of the value of bogus purchases. - Appeal filed by the assessee is partly allowed. - ITA No.5008/Mum/2017 - - - Dated:- 3-12-2018 - Shri B.R.Baskaran, AM and Shri Amarjit Singh, JM For the Appellant : Mrs.Ruchi M.Rathod, Advocate For the Respondent : Shri Chaudhary Arunkumar Singh ORDER PER B.R.BASKARAN (AM) : The appeal filed by the assessee is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lso failed to furnish stock register. Under these set of facts the A.O. took the view that the assessee could not prove the genuineness of the purchases. The A.O. also took the view that the books of account of the assessee are not reliable. Accordingly he rejected the books of accounts and estimated the total income of the assessee at 25% of the entire sales value declared by the assessee. 4. In the appellate proceedings, the learned CIT(A) upheld the rejection of books of account. However he took the view that the profit should have been estimated on the alleged bogus purchases instead of estimating the profit on the entire sales. Accordingly, the learned CIT(A) modified the order of the A.O. and directed him to add 25% value of bogus ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that in the case of N.K. Proteins, the Hon'ble Gujarat High Court has confirmed the addition of entire amount of bogus purchases. Accordingly he submitted that the order passed by the learned CIT(A) does not call for any interference as the learned CIT(A) has sustained addition only to the extent of 25% of the value of bogus purchases. 7. We have heard the rival contentions and perused the records. We noticed that the assessee has furnished copies of invoices and also details of payments made with the suppliers. It could not furnish evidences like delivery challans, transportation vouchers etc. The assessee also could not produce the suppliers before the Assessing Officer nor it could obtain confirmation letters from them. The A.O. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he above said case, since the Revenue did not challenge the order passed by the learned CIT(A), i.e., in absence of the appeal by the revenue, the ITAT could not have taken away the relief already granted by Ld CIT(A). It was observed so in the order passed by ITAT. Hence, in our opinion, the assessee can not take support of the above said order passed by the Tribunal. 10. Since the assessee has failed to reconcile the purchases with the sales, we are of the view that the profit element embedded in such purchases is justified. The learned AR submitted that the VAT applicable on the product is around 5%. In these kind of purchases, the assessee could have made savings on account of VAT and also would have got materials at discounted rate. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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