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TMI Blog2016 (3) TMI 1123X X X X Extracts X X X X X X X X Extracts X X X X ..... refore, it is not practically possible to have purchases supported by bills. Secondly, it is equally not possible to furnish details of such small “raddiwallas”. Therefore in our considered opinion, treating 15% of the total purchases as bogus purchases is unjustifiable and the action of the A.O is totally erroneous on the peculiar facts of the case in hand.There may be some room for some inflation in the purchases and the estimation of the profit by the First Appellate Authority appears to be reasonable and pragmatic. We, therefore, decline to interfere with the findings of the ld. CIT(A), all the appeals of the revenue and the assessee are accordingly dismissed. - ITA. No: 1360 & 1552/AHD/2012, ITA. No: 1361 & 1553/AHD/2012 and ITA. N ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e reply was received, therefore the officer once again issue a show cause notice to the assessee asking him to explain why 25% of the total purchases should not be disallowed on account of failure on the part of the assessee to prove the genuineness and creditworthiness of the transaction. 6. Assessee filed a detailed reply vide letter dated 04.11.2011 explaining in detail the nature of business vis- -vis the transactions related to purchases. It was explained that the books of accounts of the assessee are audited as per the provisions of the Income Tax Act, the trading account is quantified and are well supported by purchase bills, sales invoices as recorded in the sales register. In support of its contention, the assessee also filed VA ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... A.Y. 06-07, 3% in A.Y. 07- 08 and 2% in A.Y. 08-09. 8. Aggrieved by this both revenue and the assessee are in appeal before us. The ld. D.R. strongly supported the findings of the A.O and the ld. counsel for the assessee reiterated what has been stated before the lower authorities. 9. We have carefully considered the orders of the authorities below and have given a thoughtful consideration to the factual matrix brought on record before us. 10. Undisputedly, the books of accounts of the assessee are audited as per the provisions of the law. There is also no dispute that the auditors have not qualified, the purchases made by the assessee during the year under consideration. It is also an admitted fact that no adverse inference has b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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