TMI Blog2023 (1) TMI 655X X X X Extracts X X X X X X X X Extracts X X X X ..... ade. It laid down that the addition should be made to the extent of difference between the gross profit rate on genuine purchases and gross profit rate on hawala purchases. Respectfully following the precedent, we set-aside the impugned orders and remit the matter to the file of the respective AOs for applying the ratio laid down by the Hon ble jurisdictional High Court in the above noted case and then recompute the amount of additions, if any, after allowing a reasonable opportunity of hearing to the assessee. All the appeals are allowed for statistical purposes. - ITA No.875/PUN/2019 And ITA Nos.876 to 878/PUN/2019 And ITA No.879 to 881/PUN/2019 - - - Dated:- 4-1-2023 - Shri R.S. Syal, Vice President For the Assessee : Shri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion before the ld. CIT(A), who after applying with procedural formalities, enhanced the addition to 10% gross profit rate as against the lower rate applied by the AO. Aggrieved thereby, the assessee has come up in appeal before the Tribunal. 4. Similar is the position regarding Shri Shailesh Bansilal Singhavi - ITA Nos.876 to 878/PUN/2019 for A.Yrs. 2009-10 to 2011-12. For A.Y. 2009-10, the assessee had made Hawala purchases of Rs.86,59,126/-. The AO applied gross profit rate of 3.81% shown for the year by the assessee on unproved Hawala purchases (excluding VAT) at Rs.83,26,083/- for making an addition of Rs.3,17,224/-. The ld. CIT(A) enhanced it to 10% gross profit rate as against 3.81% applied by the AO. For the A.Y. 2010-11, the A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t material on record. The assail is to the making of addition(s) on the basis of bogus purchase bills received by the assessee(s) as accommodation entries from hawala dealers. It is seen that the issue of bogus purchases has come up for consideration before the Hon ble Bombay High Court in Pr.CIT Vs. Mohommad Haji Adam Co. Vide its judgment dated 11-02-2019 in ITA No.1004 of 2016 and others, the Hon ble jurisdictional High Court has held that no ad hoc addition for bogus purchases should be made. It laid down that the addition should be made to the extent of difference between the gross profit rate on genuine purchases and gross profit rate on hawala purchases. Respectfully following the precedent, I set-aside the impugned orders and ..... X X X X Extracts X X X X X X X X Extracts X X X X
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