2019 (10) TMI 712

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..... t 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, which Ld. first appellate authority has rightly done. However, finding the estimated rate to be on the higher sider, we reduce the same to 12.5% of alleged bogus purchases. The same comes to ₹ 1,43,821/-. The balance addition stands deleted. The impugned order stand modified to that extent. Appeal stands partly allowed. - I.T.A. No.4994/Mum/2018 - - - Dated:- 11-9-2019 - Shri Mahavir Singh, JM And Shri Manoj Kumar Aggarwal, AM For the Assessee : Shri Rajesh Shah-Ld. AR For the .....

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..... numbers were available on record and some of the parties are registered with MCA. 5) On the facts and circumstances of the case and in law, the appellant have already declared Gross Profit of 27.32%, again adding the same percentage, the GP will go up to 54.64% which amounts to double addition and hence the addition is un called for. 2.1 Facts on record would reveal that the assessee being resident firm stated to be engaged in manufacturing of pressure gauges, was assessed for impugned AY u/s. 143(3) r.w.s. 147 wherein the income of the assessee was determined at ₹ 13.65 Lacs after sole addition of alleged bogus purchases for ₹ 11.50 Lacs as against returned income of ₹ 2.14 Lacs filed by t .....

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..... grieved, the assessee is in further appeal before us. It appears that the revenue is not in further appeal. 3. We have heard and considered the arguments of respective representatives. 4. We are of the considered opinion there could be no sale without actual purchase of material keeping in view the assessee s nature of business. As noted by lower authorities, the assessee was in possession of primary purchase documents and the payments to suppliers were through banking channels. The sales turnover reflected by the assessee has not been disturbed / disputed by Ld. AO. However, at the same time, the assessee miserably failed to substantiate the purchases during assessment proceedings and could not produce any of .....

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