TMI Blog2013 (1) TMI 990X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee in ITA No.3147/Ahd/2008 for A.Y.2005-2006 are as under: 1. The ld. ITO has erred in law and on the facts of the appellant s case in assessing the total income of the appellant at ₹ 13,88,168/- instead of ₹ 1,96,710/- returned by the appellant. 2. The ld.ITO has erred in law and on the facts of the appellant s case in making addition of ₹ 11,91,458/- on the erroneous plea that purchases made by the appellant from M/s.R.R.Patel trading corporation is bogus. The grounds of the appeal of the assessee in ITA No.3273/Ahd/2009 for A.Y.2006-2007 are as under: 1. The ld. ITO has erred in law and on the facts of the appellant s case in assessing the total income of the appellant at ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... addition on account of bogus purchases and payment of ₹ 6,88,506/- 2. On the facts and in the circumstances of the case, the ld.CIT(A) erred in not appreciating the fact that the assessee had failed to prove the genuineness of the purchases made from Shri Ravish R. Patel, Prop.of R.R.Patel Trading Corporation and also failed to prove the nexus of payment during the year under consideration. 4. The learned counsel for the assessee submitted that the only issue in all these four cross-appeals by the assessee and the Revenue is with regard to the addition made by holding the goods purchased from certain parties as bogus and the entire purchase amount of goods was added as income in the hands of the assessee. She subm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... filed written submissions dated 8.8.2012 before the Tribunal in support of the case of the Revenue. He submitted that the decision of the Hon ble Gujarat High Court in the case of CIT Vs. Hynoup Food Oil Industries Pvt. Ltd., 290 ITR 702 (Guj) applies to the case of the assessee. He submitted that in this case, the Hon ble Gujarat High Court has held that the applicability of provisions of section 40A(3) of the Act was applicable to the case of bogus purchases as the genuineness of the payment and identity of the payee were the first and foremost requirement of law, which could not be proved by the assessee. He submitted that once the purchase made from a particular party is not proved, the entire purchase amount has to be added as income ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... duced by the assessee before the AO. We find that the sales made by the assessee could not be denied by the Revenue. We being in agreement with the decision of the Co-ordinate Bench of the ITAT, Ahmedabad in American steel Pvt. Ltd. (supra) and the purchase of goods being from same party, RRR , wherein the addition of 20% of the purchase amount was directed to be made as income in the hands of the assessee, we hold that ends of justice shall be met, if the addition on account of purchase made from RRP is sustained to the extent of 20% of the total purchases made from RRP as income in the hands of the assessee and the appeal of the assessee for both the assessment years before us are partly allowed and the grounds of the Revenue are di ..... X X X X Extracts X X X X X X X X Extracts X X X X
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