TMI Blog2023 (7) TMI 748X X X X Extracts X X X X X X X X Extracts X X X X ..... O to delete the addition being alleged commission on accommodation entries as the said amount has been subsumed in the aforementioned addition. Decided partly in favour of assessee. - ITA No. 7385/Del/2018 - - - Dated:- 17-7-2023 - Sh. N. K. Billaiya, Accountant Member And Sh. Anubhav Sharma, Judicial Member For the Appellant : Sh. Nirbhay Mehta, Advocate, Sh. Ashwani Gupta, CA For the Respondent : Sh. Vivek Kumar Upadhyay, SR DR ORDER PER N. K. BILLAIYA, AM: This appeal by the assessee is preferred against the order of the CIT(A)-27, New Delhi dated 25.09.2018 pertaining to A.Y. 2010-11. 2. The grievance of the assessee read as under : 1. That on the facts and circumstances of the case and in law, the o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re that on the basis of the information received from the Investigation Wing notice u/s. 148 was issued pursuant to which the assessee stated that the return already filed may be treated as a return of income filed in response to notice u/s. 148 of the Act. 4. The assessee was also asked to furnish copy of purchase bills in respect of the purchases made by it from Kothari Impex and Khushi Gem Pvt. Ltd. Assessee filed the necessary details. Taking a leaf out of the statement of Sh. Vijay Narendra Kothari given to Investigation Wing the AO came to the conclusion that there was no actual business of trading in diamonds carried out by Khushi Gem and Kothari Impex but these concerns were indulged in paper transactions only giving accommodatio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gus purchases are part of the total sales made by the assessee and accepted by the AO. Assuming yet not accepting that the impugned purchases are bogus all that can be added is the profit element embedded there in as held by the Hon ble High Court of Bombay in the case of Mohammed Hazi 103 taxmann.com 459 which has been followed by the coordinate Bench in ITA No.7384/Del/2018. We find that the net profit shown by the assessee is 7.50%, therefore, the AO is directed to restrict the addition to 7.50% of Rs. 13921785/- being the alleged bogus purchases and delete the balance amount. 12. We further direct the AO to delete the addition 278435/- being alleged commission on accommodation entries as the said amount has been subsumed in the afore ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
