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TMI Blog2017 (10) TMI 1451X X X X Extracts X X X X X X X X Extracts X X X X ..... erit in the contentions of A.R. Since the quantity details have been reconciled and since it has also been certified by the tax auditor, in my view, there is no necessity to disallow entire amount of alleged bogus purchases. As noticed that the AO had estimated the profit element embedded in the bogus purchases at 12.50% and our view, it appears to be reasonable. Accordingly set aside the order pa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... teel to the tune of ₹ 109.60 lakhs. During the course of assessment proceedings, the assessee contended that the purchases made from Siddhivinayak Steel are genuine. In support of the same the assessee furnished copies of the purchase bills, ledger account of supplier, details of payments made to the supplier. The Assessing Officer did not agree with the contentions of the assessee and accor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... CIT(A) took the view that the profit of 12.5% estimated by the Assessing Officer is not correct and accordingly took the view that entire purchase of ₹ 109.60 lakhs should be disallowed. Accordingly, he enhanced income of the assessee by disallowing entire amount of purchase made from Siddhivinayak Steel. Aggrieved by the order passed by the learned CIT(A) the assessee has filed this appeal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... R. Since the quantity details have been reconciled and since it has also been certified by the tax auditor, in my view, there is no necessity to disallow entire amount of alleged bogus purchases. I notice that the AO had estimated the profit element embedded in the bogus purchases at 12.50% and in my view, it appears to be reasonable. Accordingly I set aside the order passed by Ld CIT(A) on this i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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