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TMI Blog2015 (12) TMI 378X X X X Extracts X X X X X X X X Extracts X X X X ..... ive tally in which no defect has been pointed out. On these facts and also once the very basis of information that assessee was engaged in getting accommodation bill from Rakeshkumar Gupta has been denied by the Rakeshkumar Gupta and its concerns then, there remains no basis for making any addition on account of bogus purchases.If the opening stock, closing stock, sales, gross profit have not been disturbed and quantitative details of purchases are fully verifiable, then no addition on account of purchases can be made. Thus, the finding of the CIT(A) to this extent is upheld. However, the Ld. CIT(A) has went step further and made an addition of 10% on account of gross profit on such alleged purchases on the ground that such an addition w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tent of peak of the purchases made form such parties on account of bogus purchase made in cash from the open market out of unaccounted cash, in view of the decision held by the Hon ble ITAT s C Bench, in the case of Vijay Proteins Ltd vs ACIT (58 ITD 428). 3. For the above mentioned reason and any other reasons that may be urged at the time of hearing, it is required that the order of the CIT(A) be quashed and that of the AO be restored . 2. Brief facts of the case are that, the assessee is engaged in the business of trading in unbranded cloth. Return of income for the AY 2003-04 was filed on 30.10.2003 declaring total income of ₹ 3,78,775/-, which was duly accepted and processed u/s 143(1). In the wake of survey operatio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e assessee s contention and observed that assessee has not maintained day-to-day stock register and even the Auditors have pointed out that the quantitative details have not been maintained. The assessee also could not produce any evidence to show that the alleged called purchases from the such parties have been sold on no profit and no loss basis . Accordingly, he added the entire purchases of ₹ 14,63,952/- as bogus purchase u/s 69, after discussing the issue in detail from pages 3 to 7 of the assessment order. 3. Before the CIT(A), it was submitted that, the statement of Shri Rakeshkumar Gupta recorded at the time of survey was later on retracted by him, therefore, no adverse inference or cognizance should be taken from his su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rofit for the said purchases to plug any leakage of revenue and accordingly, the addition of ₹ 1,15,668/- was made in the following manner :- 6.1 Looking at the facts and circumstances of the case as a whole, I am of the considered view that the case of justice would be met by making addition at 10% of such purchases in order to fill the gap difference of GP for the said purchase as well to plug any leakage of revenue. The appellant has submitted that the total purchases from above parties were at ₹ 11,56,684/- as recorded in his books, hence any impounded bill exceeding that amount was even otherwise was not accounted for by the appellant, hence cannot be the basis of addition to appellant s income. The AO has made additio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t has no evidentiary value, when entire evidence for the purchases have been given by the assessee. Thus no addition whatsoever could have been made on account of purchases or on account of any GP rate. 6. After considering the rival submissions and on perusal of the finding given in the impugned orders and materials on record, we find that the assessee before the AO vide letter dated 26th August, 2010 have submitted the entire quantitative details of opening stock, purchases, sales made during the year and closing stock, the details of which have already been noted above. The assessee in support of the entries of purchases and sales has produced, purchase bills sales bills and quantitative tally in which no defect has been pointed out. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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