TMI Blog2023 (6) TMI 929X X X X Extracts X X X X X X X X Extracts X X X X ..... against the amount already surrendered by the assessee, leaving the net amount of disallowance. The amount of set off represents 85% of the amount of bogus purchases. AR submitted that the assessee had profit margin of 22.83%. Addition confirmed and adjusted at 85% of the bogus purchases is far in excess of the gross profit margin on such accommodation entries. This proves that the amount of a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ned to be disposed off. 3. Ground No.10 raised by the assessee, reads as under : 10. On the facts and in the circumstances of the case and in law the learned CIT(A) erred in upholding the disallowances of purchases of Rs. 43,47,750/- by treating the same as Bogus purchases . 4. The facts concerning this issue are that the Assessing Officer received information from the Sales Tax Departm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xpenditure offered during the course of search amounting to Rs. 2.00 crore and the unutilized part of the same should be adjusted against the instant disallowance, came to be accepted by the AO, who eventually made disallowance at Rs. 6,60,106/-, thereby adjusting unutilized amount of surrender at Rs. Rs. 36,83,644/-. The ld. CIT(A) echoed the assessment order on this point. Aggrieved thereby, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y to the extent of difference between the gross profit rate on genuine purchases and gross profit rate on bogus purchases and not the full amount of purchases. The Hon ble Bombay High Court in Pr. CIT Vs. M/s. Mohammad Haji Adam and Company (2019) 104 CCH 0391 Mum-HC has held to this extent. The Hon ble Bombay High Court in Pr. CIT Vs. Batilboi Environmental Engineering Ltd. (2022) 446 ITR 238 (Bo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion to that extent got confirmed and adjusted against the amount already surrendered by the assessee, leaving the net amount of disallowance at Rs. 6,60,106/-. The amount of set off of Rs. 36,87,644/- represents 85% of the amount of bogus purchases. The ld. AR submitted that the assessee had profit margin of 22.83%. Addition confirmed and adjusted at 85% of the bogus purchases is far in excess of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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