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TMI Blog2019 (4) TMI 1858X X X X Extracts X X X X X X X X Extracts X X X X ..... involved, are as follows :- "1. The Ld. CIT(A) has erred in law and on facts in deleting the addition of Rs. 79,05,758/- made on account of purchases made treating it as bogus and non-genuine, without properly appreciating the facts of the case and the material brought on record. 2. On the facts and in the circumstances of the case, the ld. CIT(A) ought to have upheld the order of the Assessing Officer. 3. It is, therefore, prayed that the order of the ld. CIT(A) may be set aside and that of the Assessing Officer may be restored to the above extent." 3. When the appeals were called out for hearing, learned representatives fairly agreed that the issue in appeal are now covered by Hon'ble jurisdictional High Court judgements wherein i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the above parties from the Sales Tax Dept were specific. The entire method of issuing bogus bills was accepted by various owners of the above mentioned parties and the assessing officer has relied on the information received while making the addition. The appellant has not produced any credible evidence except relying on the fact that the payment has been made by cheque and the material has been received. In view of the specific acceptance by the above parties that they were involved in issue of bogus bills, the action of the AO by treating the purchases from above parties as bogus is upheld. However, it is also noted that the appellant has been able to reconcile the purchases made and the materials consumed by it, against which it issued ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ferent sites and labour bills in respect of those work are issued separately. Therefore, it is possible to reconcile the amount of material consumed at each site. The appellant has accordingly given a reconciliation of the material purchased and consumed. Considering the fact that the appellant has been able to reconcile the quantity of purchases with the consumption, and the bills issued, it is clear that the appellant has purchased raw material from one person and obtained the bill from somebody else. In these circumstances, it would not be appropriate to disallow the entire purchases as the appellant has consumed the raw material and there is no inflation in purchases. It would, therefore, be proper to tax a reasonable percentage of tota ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ovided sale bills, held that purchases made from said parties were bogus - He, accordingly, added entire amount of purchases to gross profit of assessee - Commissioner (Appeals) having found that assessee had indeed made purchases, though not from named parties but other parties from grey market, sustained addition to extent of 30 per cent of purchase cost as probable profit of assessee - Tribunal however, sustained addition to extent of 12.5 percent - Whether since purchases were not bogus but were made from parties other than those mentioned in books of account, only profit element embedded in such purchases could be added to assessee's income - Held, yes - Whether hence, order of Tribunal needed no interference - Held, yes [Paras 6, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion of funds. Considering overall facts and circumstances of the case, it would be appropriate to apply a profit percentage of 12.5% its approved by Hon'ble Gujarat High Court in above referred cases on the bogus purchases made by the appellant during each year. The AO is directed to work out the addition accordingly." 4. Respectfully following the esteemed views of Hon'ble High Court, and as no contrary decision has been cited before us, we approve the conclusions arrived at by the learned CIT(A) and decline to interfere in the matter. 5. In the result, the appeals are dismissed. 6. As regards the cross objections filed by the assessee, learned counsel for the assessee did not press the same. 7. In the result, Cross Objections are dis ..... X X X X Extracts X X X X X X X X Extracts X X X X
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