TMI Blog2020 (12) TMI 610X X X X Extracts X X X X X X X X Extracts X X X X ..... ent of bringing the gross profit rate on such purchases at the same rate as of other genuine purchases. We respectfully following the aforesaid judgement of the Hon ble High Court set aside the matter to the file of the assessing officer with the direction to restrict the addition as regards the bogus purchases by bringing the gross profit rate on such bogus purchases at the same rate as that of the other genuine purchases. - ITA Nos. 7139. 7140, 7141/Mum/2018, 2171/Mum/2019 ITA No. 3355/Mum/2019 - - - Dated:- 16-12-2020 - SHRI SHAMIM YAHYA, AM AND SHRI VIKAS AWASTHY, JM Appellant by : None Respondent by : Shri Gurbinder Singh ORDER Per Shamim Yahya, A. M. These are four appeals by the assessee, wherein the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 97,897 5. The A.O. inter alia relied upon the Sales Tax Department information. He rejected the assessee s claim that all the documentary evidence for purchase has been submitted by observing that lorry transportation receipt has not been furnished. Furthermore, he referred to the observation in tax audit report that it is not possible to maintain quantitative detail of stock. He proceeded to reject the books of accounts and make the disallowance of 100% of the purchases. He did not doubt the sales. He did not issue any notice to the alleged bogus suppliers u/s.133(6) despite written request from the assessee. He drew adverse inference for the assessee having failed to produce the alleged bogus suppliers before him. 6. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sales are not doubted. However, in that case all the supplies were to government agency. 10. In the present case, the facts of the case indicate that assessee has made purchase from the grey market. Making purchases through the grey market gives the assessee savings on account of non-payment of tax and others at the expense of the exchequer. As regards the quantification of the profit element embedded in making of such bogus/unsubstantiated purchases by the assessee, we find that as held by Hon'ble Bombay High Court in its recent judgement in the case of Principle Commissioner of Income Tax vs. M Haji Adam Co (in ITA No. 1004 of 2016 dated 11/2/2019 in paragraph 8 there off) ,the addition in respect of bogus purchases is to be lim ..... X X X X Extracts X X X X X X X X Extracts X X X X
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