TMI Blog2020 (6) TMI 571X X X X Extracts X X X X X X X X Extracts X X X X ..... nce from the said judgment of the Hon'ble Bombay High Court in the case of Pr.CIT Vs. Mohommad Haji Adam (supra.), we set aside the order of the Ld. CIT(Appeal) and restore the matter back to the file of the Assessing Officer for undertaking this exercise and finding out the excess gross profit rate earned from bogus purchases and then making the addition accordingly after allowing reasonable opportunity of hearing to the assessee. Appeal of the assessee is allowed for statistical purposes. Penalty u/s 271(1)(c) - We set aside the order of the Ld. CIT(Appeals) in this appeal also and remit the matter of penalty issue back to the file of Assessing Officer to adjudicate in view of the quantum matter already in front of him as per law ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the report of the Sales Tax Department. The Ld. CIT(A) failed to properly appreciate the various judicial precedents quoted before him. The judicial view is only the profit percentage of such purchases can be estimated for addition and 100% addition of such purchases cannot be made. It be held accordingly. 2) The Appellant craves to leave, add/amend or alter any of the above grounds of appeal. 4. The brief facts of the case are that the assessee is engaged in the manufacture of auto components. The assessee filed its return of income for A.Y.2010-11 on 24.09.2010 declaring total income at ₹ 64,28,290/-. Revised return was filed by the assessee on 25.09.2010 declaring total income of ₹ 64,89,986/-. The Assessing Offic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ohommad Haji Adam (supra.) wherein it has been held that no ad-hoc addition at the rate of 10% of bogus purchases is warranted. Rather, the addition should be made to the extent of difference between gross profit rate on genuine purchases and gross profit rate of bogus purchases. Reverting to the facts of the present case and taking guidance from the said judgment of the Hon'ble Bombay High Court in the case of Pr.CIT Vs. Mohommad Haji Adam (supra.), we set aside the order of the Ld. CIT(Appeal) and restore the matter back to the file of the Assessing Officer for undertaking this exercise and finding out the excess gross profit rate earned from bogus purchases and then making the addition accordingly after allowing reasonable opportu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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