9911796707
TMI Blog2014 (1) TMI 1493X X X X Extracts X X X X X X X X Extracts X X X X ..... he statement of Sh. D.K. Jain, a director of the assessee. During the course of that statement, the said partner had alleged that the sum of Rs. 43,34,496/- claimed to be part of the purchase transactions, in fact, were bogus and that the assessee firm had shown that such amounts were paid to Shree Laxmi Industrial Corporation for non-existent purchases. 2. The relevant facts are that for the assessment year 2006-07, the Assessing Officer (AO) made an addition of Rs. 43,34,496/-, concluding that the statement of one D.K. Jain, the Director, disclosed that the amount represented non-existent or bogus transaction. The assessee had claimed that the said amount was towards the purchases from one Shree Laxmi Industrial Corporation. The AO - and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ove firm in the sales-tax return. In other words, they had shown the sales to the assessee company. The said goods supplied by them to the assessee have been utilized by the assessee company in the regular course of manufacture of various tools, dyes, cutting tools etc. submitted by the assessee. At page No.47-112 have been placed the sales tax documents of Shree Laxmi Industrial Corporation, at page no.113-131 has been placed confirmed copy of accounts in the books of Shree Laxmi Industrial Corporation with purchase bills. At pages No.132-176 has been made available a copy of stock registered and at page nos. 187-230 of the paper book has been made available a copy of bank statements of Shree Laxmi Industrial Corporation. The copies of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not proper on the part of the AO to deny the claimed purchases on the basis of which sales were made. In such circumstances, only option if any was available with the department was to estimate the income of the assessee during the year on the basis of trading result of earlier three years, made available at page no.38 of the paper book filed on behalf of the assessee. The same has been reproduced hereinabove in the preceding paragraph. On perusal of which we find that during the year, the assessee has shown better gross profit at a better GP rate of 27.67% in comparison to the GP profit and GP rates of earlier two AYs. In the AY 2005-06, the assessee has shown GP rate on 25.67% and in AY 2004-05, the GP rate shown is 25.47%. Since the asse ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
