TMI Blog2023 (9) TMI 1174X X X X Extracts X X X X X X X X Extracts X X X X ..... e based on material before it and after analysing the facts and figure available before it. When the Tribunal has thought it fit to reduce the disallowance at 6% from 12.5%, the Tribunal had before it the facts which were duly analysed by it. No interference is called for in the said conclusion and findings of the Tribunal in the present appeal by this court. No substantial question of law arises - HONOURABLE MR. JUSTICE BIREN VAISHNAV AND HONOURABLE MR. JUSTICE BHARGAV D. KARIA Appearance: For the Appellant(s) No. 1 : Mrs. Kalpana K Raval (1046) For the Opponent(s) No. 1 : Mr. Darshan Gandhi ORAL ORDER (PER : HONOURABLE MR. JUSTICE BIREN VAISHNAV) 1. Mr. Darshan Gandhi, learned advocate is permit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of trading activity of diamonds. The assessee had filed his return of income. Information was received by the DGIT (Investigation), Mumbai that during the search proceedings in the case of Rajendra Jain group on 03.10.2013, it was gathered that the Rajendra Jain group was engaged in the business of issuing non genuine purchase bills, unsecured loans and accommodation entries to various parties. 2.1 In each case, a scrutiny assessment under Section 143(3) of the Act was carried out determining a figure of total assessed income on account of unexplained purchases being accommodation entries. Aggrieved by the assessment order, the assessee preferred an appeal before the learned CIT(A), Surat. The appeals were partly allowed whereby the CIT ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Tribunal partially allowed the appeal of the assessee to further reduce the disallowance at 6%. In so concluding, the Tribunal observed in paragraph No. 21 as under, .during the financial year under consideration the assessee has shown total turnover of Rs. 66,09,62,458/-. The assessee has shown Gross Profit @ 78% and net Profit @ 0.02% (page 11 of paper Book). The assessee while filing the return of income has declared taxable income of Rs. 1,81,840/- only. We are conscious of the facts that dispute before us is only with regard of the disputed purchases of Rs. 4.34 Crore, which was shown to have purchased from the entity managed by Bhanwarlal Jain Group. During the search action on Bhanwarlal Jain no stock of goods/material was f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce the disallowance at 6% from 12.5%, the Tribunal had before it the facts which were duly analysed by it. No interference is called for in the said conclusion and findings of the Tribunal in the present appeal by this court. 6.1 The another weighing aspect is that the Tax Appeal No. 674 of 2022 in Principal Commissioner of Income Tax 1, Surat vs. M/s. Surya Impex which came to be decided by the co-ordinate Bench on 16.1.2023 dealt with the very issue of accommodation entries provided by Bhanwarlal Jain Group. The group involved in the said case is the same group who is saddled with allegations of providing accommodation entry to the assessee. In M/s. Surya Impex (supra) the court held in favour of the assessee. The questions of law ..... X X X X Extracts X X X X X X X X Extracts X X X X
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