TMI Blog2024 (1) TMI 839X X X X Extracts X X X X X X X X Extracts X X X X ..... attained finality, the only consequence is that they do not deserve to be treated at par with the latter category in light of the overwhelming evidence in this case file. Revenue has also quoted a catena of case law wherein such bogus purchases stand assessed at varying margins from 5-12%. We deem it appropriate in these peculiar facts to conclude that a lump sum disallowance of 6% in all these three cases would meet the ends of justice with a rider that the same shall not be taken as a precedent. Necessary computation shall follow as per law. - SHRI SATBEER SINGH GODARA, JUDICIAL MEMBER AND DR. DIPAK P. RIPOTE, ACCOUNTANT MEMBER For the Appellant : Shri Sanket Joshi For the Respondent : Shri M.G. Jasnani ORDER ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s reversed and therefore, the necessary consequence that flows therefrom is that the foregoing as many cases also deserve to be heard afresh. Mr. Joshi s next submission is that our non-clubbing of all these cases would render the tribunal s common order in his cases as attained finality. We find no merit in the assessee s instant submissions once the issue before us is to the limited extent of applicability of hon ble apex court s decision in N.K. Proteins Ltd. vs. DCIT [2017] 84 taxmann.com 195 (SC) (supra) as per their lordships remand directions. That being the case, we hardly see any merit in assessee s stand seeking to get his three appeals hereinabove listed for afresh hearing. 4. Next comes the sole surviving issue of applicabil ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ne purchases. The decision of the Gujarat High Court in the case of N.K. Industries Ltd. (supra) cannot be applied without reference to the facts. In fact in paragraph 8 of the same Judgment the Court held and observed as under So far as the question regarding addition of Rs. 3,70,78,125/- as gross profit on sales of Rs. 37.08 Crores made by the Assessing Officer despite the fact that the said sales had admittedly been recorded in the regular books during Financial Year 1997-98 is concerned, we are of the view that the assessee cannot be punished since sale price is accepted by the revenue. Therefore, even if 6 % gross profit is taken into account, the corresponding cost price is required to be deducted and tax cannot be levied on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ctual backdrop that we deem it appropriate to clarify that the question of assessee s bogus purchases per se has already attained finality as per the Revenue s substantive questions (a) to (c) in their lordships directions reproduced in preceding paragraphs. 6. Coming to the sole surviving question regarding the impugned disallowances involving GP component, learned counsel again referred to hon ble jurisdictional high court s decision in PCIT vs. M/s.Mohammad Haji Adam Co. (supra) upholding the tribunal s order to the extent it had directed the Assessing Officer to tax the assessee(s) concerned on the basis of difference in the GP rates of verified and unverified bogus purchases; as the case may be. So far as the assessee s case befo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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