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TMI Blog2025 (1) TMI 1294X X X X Extracts X X X X X X X X Extracts X X X X ..... ubmits that substantial questions of law as framed in paragraph 4 of the appeal memo arise; therefore, this appeal may be admitted. 3. Mr. Om Kandalkar, learned counsel for the Respondent, defends the impugned ITAT order based on the reasoning reflected therein. He refers to paragraph 7 of the ITAT order and points out that there was no clear finding on the alleged bogus purchases. He submits that in similar circumstances, the Coordinate Benches of this Court in Income Tax Appeal Nos.1662 of 2018 and 1753 of 2018 declined to interfere. 4. The rival contentions now fall for our determination. 5. We have considered the rival contentions and perused the material on record. 6. In particular, we transcribe paragraph 7 of the ITAT's order, wh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s, no independent inquiry has been conducted by the AO. It is a fact on record, before the AO as well as the first appellate authority, assessee has produced not only its books of account but purchase and sale invoices, ledger accounts, bank statements to prove the genuineness of purchases. The assessee has also produced statement showing quantitative tally of purchases made, consumption made in manufacturing process as well as sale of finished products with reference to the purchase and sales invoices. On a careful reading of the assessment order, we have not found any defect or discrepancy pointed out by the AO in such quantitative tally. It is also a fact that the AO has not disputed the consumption of material or sales turnover declared ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eeping in view the gross profit shown by the assessee in the preceding assessment years, we are of the considered opinion that addition made on account of bogus purchases should be restricted to an amount to be worked out by applying the gross profit rate of 7% (seven) of the alleged bogus purchases. The AO is directed to compute the addition accordingly and grant consequential relief to the assessee." 7. In almost similar circumstances, two Co-ordinate Benches of this Court, by their orders dated 7 August 2024 and 15 October 2024 in Income Tax Appeal Nos.1662 of 2018 and 1753 of 2018, did not admit appeals raising similar questions. By adopting the reasoning in these orders, we decline to entertain this appeal. The issues raised turn on ..... X X X X Extracts X X X X X X X X Extracts X X X X
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