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TMI Blog2018 (1) TMI 1412X X X X Extracts X X X X X X X X Extracts X X X X ..... s on account of non-payment of tax and others at the expense of the exchequer. In such situation, in my considered opinion, on the facts and circumstances of the case, 12.5 % disallowance out of the bogus purchases meets the end of justice. As assessee has prayed that when only the profits earned by the assessee on these bogus purchase transaction is to be taxed, the gross profit already shown by the assessee and offered to tax should be reduced from the standard 12.5% being directed to be disallowed on account of bogus purchase find considerable cogency in the submission as otherwise it will be double jeopardy to the assessee. Accordingly, modify the order of learned CIT-A and direct that the disallowance in this case be restricted to 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sallowance of entire ₹ 9,44,174/- made in respect of Alleged purchases be deleted. 2. On the facts and circumstances of the case and in law, the CIT (A), erred in dismissing the ground for the appellant's plea of withdrawal of initiation of penalty proceedings u/s 271(1) (c). 3. The assessing officer (A.O. for short) in this case has made 12.5% addition on account of bogus purchase amounting to ₹ 9,44,174/-. 4. Upon the assessee s appeal, the ld. CIT(A) confirmed the same. 5. Against the above order, the assessee is in appeal before the ITAT. 6. I have heard both the counsel and perused the records. In support of this case, the learned counsel of the assessee has placed reliance upon the decision of H ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uer. In such situation, in my considered opinion, on the facts and circumstances of the case, 12.5 % disallowance out of the bogus purchases meets the end of justice. However, in this regard the learned counsel of the assessee has prayed that when only the profits earned by the assessee on these bogus purchase transaction is to be taxed, the gross profit already shown by the assessee and offered to tax should be reduced from the standard 12.5% being directed to be disallowed on account of bogus purchase. 8. Upon careful consideration, I find considerable cogency in the submission of the learned counsel of the assessee, as otherwise it will be double jeopardy to the assessee. Accordingly, I modify the order of learned CIT-A and direct tha ..... X X X X Extracts X X X X X X X X Extracts X X X X
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