2017 (7) TMI 423

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..... IT(A)-35 dated 30.06.2014 for the assessment year 2010-11 in the matter of order passed u/s.143(3) of the IT Act wherein Revenue is aggrieved for deletion of addition of Rs. 2,61,77,677/- u/s. 69C of the IT Act. 2. Rival contentions have been heard and record perused. 3. Facts in brief are that assessee is a dealer in ferrous and non ferrous metals. During the course of scrutiny assessment, AO o .....

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..... e above parties to substantiate his claim alongwith documentary evidences such as transport receipts, challans etc., However these parties were not produced before the AO. Accordingly, AO made addition of Rs. 2,61,77,677/- u/s.69C as unexplained expenditure. 4. By the impugned order CIT(A) deleted the addition after observing as under:- I have' gone through the facts. of the case. The main co .....

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..... of showing the' evidence of actual' purchases and the sales being made on the basis of the said purchases and the source of payment not being in doubt and' neither there being any evidence noticed by the AO that any of the payments made by the cheques have been routed back to the appellant, the ratio in. the decision of Nikunj Eximp Enterprises Pvt. Ltd of the jurisdictional Hon'b .....

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..... hart of the assessee to indicate that gross profit shown by assessee during the year was more or less at par as shown in the earlier orders, accordingly, he contended that addition if any should be upheld to the difference in GP @0.95% on the alleged bogus purchases of Rs. 2,61,77,677/-. 7. We have considered rival contentions and carefully gone through the orders of the authorities below. We had .....

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..... signed for decline of GP during the year under consideration. Keeping in view entirety of facts and circumstances, we restrict the addition to the extent of 5% of the bogus purchase so as to fulfill the leakage in revenue. We direct accordingly. 9. In the result, appeal of the Revenue is allowed in part in terms indicated hereinabove. Order pronounced in the open court on this 06/02/2017.
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