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TMI Blog2018 (9) TMI 1086X X X X Extracts X X X X X X X X Extracts X X X X ..... im. Therefore, in such a situation, the addition, which could be made, was to account for profit element embedded in these purchase transactions to factorize for profit earned by assessee against possible purchase of material in the grey market and undue benefit of VAT against such bogus purchases. Therefore, on factual matrix, a composite addition @12.5% of bogus purchase, in our opinion, would b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has been determined at ₹ 66.87 Lacs after certain additions / disallowances as against returned income of ₹ 6.69 Lacs e-filed by the assessee on 12/10/2010. None has appeared for assessee despite being provided with several opportunities of being heard and no valid adjournment application is on record. Left with no option, we proceed to dispose-off the same on the basis of material ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ubmitted that payments were through banking channels. However, not convinced, Ld. AO treated the same as bogus purchases and added the same to the income of the assessee. 3. Aggrieved, the assessee contested the same without partial success before Ld. CIT(A) vide impugned order dated 29/05/2015 wherein Ld. CIT(A) considered the various submissions made by assessee and judicial pronouncements ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... worked out to ₹ 1,19,326/-. Aggrieved, the assessee is in further appeal before us. The Ld. Departmental Representative has placed reliance on the stand of lower authorities. 4. Upon careful consideration, the approach of Ld. first appellate authority in proposing additions from various angles was not justified since the nature of assessee s business required purchase / consumption of ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essee against possible purchase of material in the grey market and undue benefit of VAT against such bogus purchases. Therefore, on factual matrix, a composite addition @12.5% of bogus purchase, in our opinion, would be a reasonable estimation of additions. Hence, we estimate the same @12.5% of alleged bogus purchases of ₹ 59,66,347/- which comes to ₹ 7,45,793/-. Accordingly the ad ..... X X X X Extracts X X X X X X X X Extracts X X X X
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