TMI Blog2019 (9) TMI 1648X X X X Extracts X X X X X X X X Extracts X X X X ..... ported from honourable jurisdictional High Court decision in the case of Nikunj Eximp Enterprises ( 2014 (7) TMI 559 - BOMBAY HIGH COURT ) In this case the honourable High Court has upheld hundred percent allowance for the purchases said to be bogus when sales are not doubted. However in that case all the supplies were to government agency. In the present case the facts of the case indicate tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... AM For the Assessee : Shri. Neel Khandelwal. For the Revenue Shri. Chaitanya Anjaria. ORDER PER SHAHMIM YAHYA, Accountant Member: This is an appeal by the assessee wherein the assessee is aggrieved that the learned CIT-A has erred in sustaining 12.5% disallowance on account of bogus purchases, vide order dated 09.10.2017 pertaining to assessment year 2010-11. 2. Brief ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eration I find that assessee has provided the documentary evidence for the purchase. Adverse inference has been drawn due to the inability of the assessee to produce the suppliers. I find that in this case the sales have not been doubted. It is settled law that when sales are not doubted, hundred percent disallowance for bogus purchase cannot be done. The rationale being no sales is possible witho ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rable High Court of Bombay in its recent judgement in the case of principle Commissioner of income tax versus M Haji Adam Co (ITA number 1004 of 2016 dated 11/2/2019 in paragraph 8 there off) ,the addition in respect of bogus purchases is to be limited to the extent of bringing the gross profit rate on such purchases at the same rate as of other genuine purchases. 6. I respectfully following ..... X X X X Extracts X X X X X X X X Extracts X X X X
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