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TMI Blog2018 (10) TMI 1795X X X X Extracts X X X X X X X X Extracts X X X X ..... rict the estimated disallowance on account of alleged bogus purchase. Appeal of the assessee is partly allowed. - I.T.A. No. 3131/Ahd/2015 - - - Dated:- 31-10-2018 - Shri Pradip Kumar Kedia, Accountant Member And Shri Mahavir Prasad, Judicial Memebr Appellant by: Shri Dhiren Shah, A.R. Respondent by: Shri Mudit Nagpal, Sr. D.R. ORDER Pradip Kumar Kedia, The captioned appeal has been filed at the instance of the assessee against the order of the Commissioner of Income Tax (Appeals)-6, Ahmedabad ( CIT(A) in short), dated 31.08.2015 arising in the assessment order dated 28.03.2014 passed by the Assessing Officer (AO) under s. 147 r.w.s. 143(3) of the Income Tax Act, 1961 (the Act) concerning assessment year 20 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ces and quantitative details and added the aforesaid amount of ₹ 1,28,53,148/- to the total income of the assessee. 4. Aggrieved, the assessee preferred appeal before the CIT(A) without any success. 5. Further aggrieved, the assessee preferred appeal before the Tribunal. 6. The learned AR for the assessee vehemently submitted that assessee is merely a trader where every purchases matches with the corresponding sale. The learned AR adverted to the P L account and submitted that out of total purchase of ₹ 221.20 Lakhs recorded, the AO has alleged accommodation purchase to the tune of ₹ 128.53 Lakhs which is more than 50% of the purchases. The corresponding sales stand at ₹ 256.98 Lakhs. Therefore, when the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e notice that the assessee is engaged in trading of goods and therefore every purchase gets matched by corresponding sales/closing stock. Thus, the scope of manipulation in bills towards purchase quantity is nearly non-existent. What at best thus can be manipulated is the price/value of the goods purchased. In other words, while it may be possible that purchases might have been made from bogus parties, nevertheless, the purchases themselves cannot be treated as bogus. The sale recorded in books is not in question. Contextually, the assessee had declared 7.31% towards profit on such alleged bogus purchases. As stated, the relevant documents including invoice, payment through banking channel, quantity tally were made available to the Revenue ..... X X X X Extracts X X X X X X X X Extracts X X X X
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