TMI Blog2021 (9) TMI 406X X X X Extracts X X X X X X X X Extracts X X X X ..... quire consumption of various material. The assessee could produce copies of invoices, delivery Challans as well as material inward register. The payment to the supplier was through banking channels. Therefore, it was a fit case for estimation of addition to plug the leakage of revenue. The estimation of 12.5% as made by Ld. CIT(A), in our considered opinion, was quite fair reasonable on the given factual matrix. Finding no reason to interfere in the same, we dismiss the ground raised by the revenue. - I.T.A. No. 5313/Mum/2015 - - - Dated:- 6-9-2021 - HON BLE SHRI PAVAN KUMAR GADALE , JM AND HON BLE SHRI MANOJ KUMAR AGGARWAL , AM Appellant by : Shri Sunil Kumar Mishra-Ld. Sr.DR Respondent by : Shri Vijay Mehta-Ld. AR ORD ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e facts and in the circumstances of the case and in law, the Ld. CIT(A) has erred in applying the ration of the Hon'ble Gujrat High Court decision in the case of CIT Vs Simit P.Seth,356 ITR 451(Guj) and hereby Ld.CIT(A) erred in not appreciating the fact that the assessee failed to substantiate its case with evidences. As evident the revenue is aggrieved by deletion of certain disallowance u/r 8D(2)(ii) as well as by relief provided by Ld. CIT(A) on account of alleged bogus purchases. 3. Having heard rival submissions and upon perusal of material on record, our adjudication to the subject matter of appeal would be as given in succeeding paragraphs. 4. Disallowance u/s 14A 4.1 The assessee earned share of profit of ͅ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ground raised by the revenue stand dismissed. 5. Addition on account of Alleged Bogus purchases 5.1 Pursuant to information received from Sale Tax Department, it was alleged that assessee made suspicious purchases of ₹ 30.67 Lacs from an entity namely Suraj Tube Corporation. The assessee furnished documentary evidences and submitted that the payments were through banking channels. However, in the absence of evidence regarding consumption of these goods for business activity, Ld. AO disallowed these purchases. 5.2 Upon further appeal, Ld. CIT(A) primarily relying on the decision of the Hon ble Gujarat High Court in the case of CIT V/s Smith P. Sheth (2013) 356 ITR 451 (Guj), directed Ld. AO to estimate the additions @ 12. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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