TMI Blog2022 (7) TMI 791X X X X Extracts X X X X X X X X Extracts X X X X ..... was treated as bogus purchase on the basis of plethora of judgments. It has been held only profit can be added to the income of the assessee. In view of the above, appeal of the assessee is partly allowed. - I.T.A. No. 2190/Ahd/2018 - - - Dated:- 12-7-2022 - Smt. Annapurna Gupta, Accountant Memebr And Shri Mahavir Prasad, Judicial Memebr For the Appellant : Shri M. J. Shah, A.R. For the Responden : Shri N. J. Vyas, Sr. D.R. ORDER PER MAHAVIR PRASAD, JM: The appeal has been preferred by the assessee against the order of the Commissioner of Income Tax (Appeals)-6, Ahmedabad ( CIT(A) in short) vide Appeal No. CIT(A)-6/252/16-17 dated 05.07.2018 arising in the assessment order dated 29.02.2016 passed by the Asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r, against the assessment order, assessee preferred first statutory appeal before the learned CIT(A). Before the learned CIT(A), learned AR appeared on behalf of the assessee and filed certain documents as additional evidence, such as, i. assessment order for A.Y. 2007-08 in case of the assessee; ii. penalty notice under S. 274 r.w.s. 271(1)(c) of the Act for A.Y. 2007-08; iii. Copy of appeal order dated 26.12.2006 for A.Y. 2007-08 in the case of the appellant passed by the CIT(A)-6, Ahmedabad dismissing the appeal of the appellant; iv. Assessment order for A.Y. 2008-09 in the case of Sparsh Export Pvt. Ltd. Thereafter, a remand report was sought from the learned AO and he submitted the following report: A search was carried out at t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ons on the issue. However the assessee failed to do so . From the above stated facts and the submissions made by the assessee, it is amply clear that there is no violation of Rule 46A(I)(a)(b)(c) (d) and therefore the evidences submitted may not be accepted and the addition confirmed if deemed fit. 6. In rebuttal of the remand report, the assessee submitted following details: With respect to admission of additional evidence under Rule 46A of the Income-tax Rules, 1962: The appellant was deprived from submitting the evidence such as assessment order of M/s Sparsh Exports Pvt. Ltd. and other relevant documentary evidence at the time of assessment proceeding. Further, there are numerous judicial precedents which allow adm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... circumstances we would like to draw your kind attention to the fact that, amongst others, there is no mention of any bogus entries between the appellant and M/s. Sparsh Exports Pvt. Ltd. in the assessment order of the Sparsh Exports Pvt. Ltd, for A.Y. 2008-09. Thus, it cannot be said that all the sales by M/s Sparsh Exports Pvt. Ltd. is an accommodation entry. Only those sales entries which are identified by the AO in the assessment order of Sparsh Exports Pvt. Ltd. are to be considered as accommodation entry. Thus, we would request your honor to kindly delete the above addition as the very basis of the same is deluded and without any justification. Without prejudice to our above submission, we would like to further st ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... order and established that there was no genuine purchase of the diamond and estimated profit @12.5 % in the case of the Hon ble Gujarat High Court in the case of Smith P. Sheth (2013) TMI 1028 vide order dated 16.01.2013. 9. Since, above order has been filed by the AR in support of his argument, therefore, we direct the AO to estimate the profit @12.5% amounting to Rs.5,18,803/- which was treated as bogus purchase on the basis of plethora of judgments. It has been held only profit can be added to the income of the assessee. In view of the above, appeal of the assessee is partly allowed. 10. In the result, the appeal filed by the Assessee is partly allowed. This Order pronounced in Open Court on 12/07/2022 - - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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