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2018 (11) TMI 785 - AT - Income TaxBogus purchases - G.P. estimation - Buying from grey market - Held that - We find the facts of the present case are identical to the facts in the case of DCIT Vs. M/s. Rang Rasayan 2018 (7) TMI 1859 - ITAT PUNE . Therefore, considering the rule of consistency, we approve the view taken by the Ld.CIT(A) adopting Gross Profit @5% of the purchases and dismiss the grounds raised by the assessee.
Issues involved:
- Cross appeals filed by the assessee and the Revenue against separate orders of CIT(A)-2, Pune for A.Yrs. 2009-10 and 2010-11. - Disallowance of an amount based on suspected list of suppliers by the AO. - Confirmation of part addition by CIT(A) and relief granted. - Grounds raised by both Assessee and Revenue in their respective appeals. - Estimation of Gross Profit on alleged purchases. - Approval of view taken by CIT(A) by the Tribunal. Analysis: 1. Cross Appeals for A.Y. 2009-10: - The assessee's case was reopened under section 147 of the Act due to suspected suppliers identified by the Sales Tax Department. - The AO disallowed an amount based on the information received. - CIT(A) confirmed part of the addition but provided relief to the assessee based on the Gujarat High Court judgment. - Both Assessee and Revenue raised grounds challenging the CIT(A)'s decision. - The Tribunal analyzed the facts and upheld the CIT(A)'s decision, estimating Gross Profit at 15% on the purchases. - The Tribunal approved the view taken by the CIT(A) based on consistency with another case. 2. Cross Appeal by Revenue - A.Y. 2009-10: - The Tribunal dismissed the grounds raised by the Revenue as the view taken by the CIT(A) was already approved. 3. Appeals for A.Y. 2010-11: - The issues and grounds raised for A.Y. 2010-11 were similar to those of A.Y. 2009-10. - The Tribunal dismissed the appeals of both the Assessee and the Revenue based on the reasoning applied for A.Y. 2009-10. 4. Conclusion: - Both appeals of the assessee and the Revenue for both A.Y. 2009-10 and 2010-11 were dismissed by the Tribunal, upholding the decisions of the CIT(A) based on the estimation of Gross Profit on the alleged purchases and the principle of consistency. This judgment involved the analysis of suspected suppliers, disallowance of amounts, estimation of Gross Profit, and the application of legal precedents to determine the tax liability. The Tribunal upheld the decisions of the CIT(A) based on the evidence presented and the principles of taxation law.
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