9911796707
TMI Blog2017 (8) TMI 118X X X X Extracts X X X X X X X X Extracts X X X X ..... Act'). 2. The only common issue in all these three appeals of assessee is as regards to the order of CIT(A) confirming the action of the AO in adding the entire bogus purchases without any evidence and also rejecting the books of accounts without any basis. The assessee has also challenged the ground regarding the reopening under section 147 in all the three years 3. At the outset, the learned Counsel for the assessee stated that he is not interested in prosecuting the issue of reopening in all the three years and also rejection of books of account. Accordingly, the grounds of reopening and rejection of books of account is dismissed as not pressed. 4. Now, the only issue remains for adjudication is the issue of bogus purchases added by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ppeal before CIT(A), who also confirmed the action of the AO, the CIT(A) also gone into the details furnished by the assessee in respect of Gross Profit / Net Profit for the last two-three years which was considered as under: - 7. The CIT(A) after considering the normal purchase and hawala purchase, applied 8% by relying on the decision of Hon'ble Supreme Court in the case of M/s Kanchwala Gems Vs JCIT (2007) 288 ITR 10 (SC) & provisions of the section 44AD of the Act vide Para 11.15, which reads as under: - "11. 15 As against 8% of NP, the appellant, being contractor, had shown NP @5.34% in AY 09-10, 5.51% in A.Y 10-11 & 5.49% in AN 11-12, which is much lesser than the NP After disallowance of bogus purchases, in these years, the res ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fact that the assessee has procured bills from hawala parties and made payments by account payee cheques to these parties. Further, the assessee also produced the stock register for raw material and purchases. Once this is a fact that the payments are by account payee cheques, the stock register is maintained and produced the bills from hawala parties, the assessee has used the material for sale which he might have purchased from grey market. It is common presumption which has not be rebutted by the Revenue. Hon'ble Supreme Court in the case of Kanchwala Gems (supra) wherein Hon'ble Supreme Court has held that the disallowance of bogus purchases is to be restricted to certain percentage of profit, wherein it is held that the purchases from ..... X X X X Extracts X X X X X X X X Extracts X X X X
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