TMI Blog2018 (4) TMI 1802X X X X Extracts X X X X X X X X Extracts X X X X ..... ORDER Assessee is in appeal before the Tribunal against order of ld.CIT(A)-6, Ahmedabad dated 9.3.2016 passed for the Asstt.Year 2008- 09. 2. In the first ground of appeal, the assessee has pleaded that the ld.CIT(A) has erred in upholding reopening of the assessment. However, at the time of hearing, the ld.counsel for the assessee did not advance any arguments in this regard, hence, it is dismissed. 3. In ground no.2, the assessee has pleaded that the ld.CIT(A) has erred in confirming addition of ₹ 77,68,002/- by making an enhancement from ₹ 19,97,584/-. 4. Brief facts of the case are that the assessee has filed his return of income on 29.9.2008 declaring total income at ₹ 8,42,500/-. Assessment was fram ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gus. 6. Before me, the ld.counsel for the assessee contended that the issue in dispute is squarely covered by the Division Bench of the ITAT in the case of the assessee for the Asstt.Year 2009-10. The Tribunal in principle concurred with the Revenue Authorities that purchases made by the assessee were not genuine. However, after analyzing details i.e. quantification of purchases and sales, the Tribunal held that only profit element involved in these purchases would be treated as income of the assessee. The Tribunal has confirmed addition to the extent of 15% of the gross purchases. In other words, the ld.counsel for the assessee suggests that 15% of the ₹ 77,68,002/- is to be confirmed. The ld.DR, on the other hand, relied upon the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Learned counsel then raises an equally significant plea that both the lower authorities ought to have disallowed / added only the profit element embedded in the above purchases in question. The Revenue fails to dispute the fact that the lower authorities have disallowed those purchases whose sales have been accepted as genuine standing assessed as such without rejection of books. We are therefore of the opinion that the learned Assessing Officer ought to have disallowed only the profit element instead of the entire purchases. We notice from the case file that the assessee had quoted umpteen number of judicial precedents in this regard. Hon'ble jurisdictional high court's decision in Sanjay Oil Cake Industries (2009) 316 ITR 274 (G ..... X X X X Extracts X X X X X X X X Extracts X X X X
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