2015 (11) TMI 1671

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..... e CIT(A) deleted the addition after sustaining the GP addition of 10% to plug the possible leakage of revenue. Hence, the addition was restricted to 10% of the alleged bogus purchases. Detailed finding recorded by CIT(A) had not been controverted by department and assessee by brining any positive material on record. Accordingly, we do not find any infirmity in the order of CIT(A) for sustaining addition of 10% of such purchases. - Decided against assessee. - ITA Nos. 7537 & 7538/Mum/2013, Cross Objection Nos. 82 & 83/Mum/2015 - - - Dated:- 4-11-2015 - Sandeep Gosain (Judicial Member) And R. C. Sharma (Accountant Member) For the Revenue : Shrikant Namdeo For the Assessee : S. C. Tiwari, Rutuja N. Pawar ORDER R. C. .....

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..... equently re-affirmed on oath U/S 131 of the Act, to make additions in hands of the purchaser party i.e. the appellant in this case. Shri Rakeshkumar Gupta and family members retracted their statements later on with affidavits which were filed before the assessment as well as appellate proceedings. The said additions are made to arrive at total purchases made by the appellant during the year at ₹ 12,56,369/- which is also confirmed by the appellant. 6.1 I further observe that the appellant has not maintained the stock register. However, since the appellant has submitted monthly quantitative details of purchases and sales made, and also submitted details of sales made against the said purchases, it has to be accepted that there can .....

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..... sales. Such recourse is not permissible unless it is specifically authorized to do so under any particular provisions contained in the Act. Under these circumstances, the additions can only be made at certain percentage of GP/NP or on ad-hoc Lumpsum amount, in consonance with the appellate orders of various CIT(A) in cases of purchases from Mr. Rakeshkumar Gupta, the copies of which are submitted by the appellant. 6.3. Keeping in view the totality of facts and circumstances of the case, I am of the opinion that the cause of justice would be met by making addition at 10% of such purchases in order to fill in the gap of difference of GP as well as to plug for possible leakage of revenue. Hence, the addition is restricted to 10% of the al .....

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