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TMI Blog2017 (10) TMI 529X X X X Extracts X X X X X X X X Extracts X X X X ..... ess of the assessee and GP declared by the assessee during the year and also the decisions of the Coordinate Benches wherein the additions are sustained to the tune of 5% to 12.5% there should be some reasonable disallowance. To maintain the consistency with the orders passed by the Tribunal earlier, we are inclined to sustain 12.5% of the total purchases. The assessee gets relief of 12.5%. The appeal of the assessee is partly allowed. - ITA NO.2110/Mum/2015 And ITA NO.2201/Mum/2015 - - - Dated:- 29-9-2017 - SHRI C.N. PRASAD, JM AND SHRI RAJESH KUMAR, AM For The Revenue : Shri Arju Garodia For The Assessee : Shri Ajay Singh ORDER PER RAJESH KUMAR, A. M: These are cross-appeals pertaining to assessment year 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Suraj Steel India 2010-11 1,38,49,500 2 Pooja Metal and Alloys 2010-11 1,52,98,500 total 2,91,48,000 The AO issued a show cause notice to the assessee dated 21.1.2014 calling for various details and proofs to prove the genuineness of purchases which was replied by the assessee vide letter dated 26.2.2014 submitting the details of purchases, copies of ledger accounts and bank statements, bills and vouchers and transport receipt and delivery challans etc. The AO, after considering the reply filed by the assessee, was of the opinion that the assessee cou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... submitted by them. The AO made disallowance. Here when we consider the above, appellant is a manufacturer. This type of case has arisen in the case of manufacturers and similar type of cases in Gujarat HC in CIT V/s Gujarat Ambuia Export Limited [20 14) 14 taxmann. com. 22 (Gujarat) wherein it is held as under: The entire Issue is based on materials on record. The Tribunal did not accept the revenue's stand that the purchases were bogus. The Tribunal committed no error so as to give rise to any question of law. The Tribunal looking to the material retained 5% of the purchase by giving cogent reasons. In the instant case, though it may appear that the purchases have been shown to have been made through V but supplied by s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on thereof in the manufacturing of finished goods and also not filed confirmations from these two parties. Whereas the ld.CIT(A), after considering the submissions of the assessee observed that the assessee has already shown NP of 3% and restricted the addition to 25% of the total purchases and after allowing crdit of GP already declared the net addition to the tune of 22% was sustained. Having gone through the facts on record and the orders of lower authorities, we find that the assessee has availed hawalas entries in respect of purchases to the tune of ₹ 2,91,48,000/-. But in such type of cases, the assessee purchases good from gray market at cheaper rates thus gets additional benefit by avoiding VAT, and other in levies. The assess ..... X X X X Extracts X X X X X X X X Extracts X X X X
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