TMI Blog2019 (7) TMI 838X X X X Extracts X X X X X X X X Extracts X X X X ..... Judgment held is that the Department had not rejected the instance of the purchases since the sales out of purchase of such raw material was accounted for and accepted. With above position, the Tribunal applied the principle of taxing the profit embedded in such purchases covered by the bogus bills, instead of disallowing the entire expenditure. We do not find any error in the view of the Tribuna ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Shyam Walve, for Appellant. P.C.: 1. The Revenue has filed this Appeal to challenge the Judgment of the Income Tax Appellate Tribunal ( the Tribunal for short). The following questions are presented for our consideration : (i) Whether on the facts and in the circumstances of the case and in law, the Hon'ble ITAT was justified in reducing the addition from S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e's purchases were found to be bogus. The entire purchase amount was therefore, added to the assessee's income. The Tribunal, however, restricted to the said sum of ₹ 2,21,600/-. The Tribunal recorded that the Assessing Officer has not rejected either the purchases or the sales made out of the said purchases. The Tribunal therefore, was of the opinion that the addition should be rest ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... this disclosure. However, in Appeal, the Commissioner (Appeals) after putting the Assessee to notice, enhanced the profit @ 6% GP. The Tribunal by the impugned Judgment deleted such addition and allowed the Assessee's Appeal. The Tribunal noted that there was no material to discard the Assessee's book results. No incriminating material or evidence of the Assessee's transactions outside ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
