2017 (4) TMI 1496

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..... in the above bogus purchases is disallowed/added rather than the entire amount. Whilst concluding so, it is made clear that we have duly taken into account the fact that the assessee is a trader than manufacturer so as to arrive at the above disallowance percentage. We accordingly direct the Assessing Officer to restrict the impugned disallowance @15%.
SHRI PRAMOD KUMAR, ACCOUNTANT MEMBER, AND SHRI S. S. GODARA, JUDICIAL MEMBER For the Assessee : Shri Gyan Pipara, A.R. For the Revenue : Mr. A. Tirkey, Sr. D.R. ORDER PER S. S. GODARA, JUDICIAL MEMBER These two assessees have filed their respective instant appeals for assessment year 2009-10, against the CIT(A)-XX, Ahmedabad's separate orders; both dated 20.01.2014 in case nos. CIT(A) .....

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..... d without disturbing the relevant books results. The Assessing Officer specifically quoted its failure in not even filing confirmation from the end of the above two purchasers so as to discharge primary onus. He alleged in assessment order dated 26.12.2011 that the assessee had booked bogus purchases in order to reduce his trading profits. He therefore treated the above gross purchases of ₹ 38lacs as bogus in nature resulting in the impugned disallowance. 4. The CIT(A) confirms Assessing Officer's action. We further notice that the assessee made all attempts to get only the profit element taxed in respect of its purchase disallowance amounts. Learned CIT(A) however declines this latter plea as well. 5. We have heard both the parties .....

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..... chases. We notice from the case file that the assessee had quoted umpteen number of judicial precedents in this regard. Hon'ble jurisdictional high court's decision in Sanjay Oil Cake Industries (2009) 316 ITR 274 (Guj) supports this latter plea. We are therefore of the view that larger interest of justice would be served in case only the profit element @15% in the above bogus purchases is disallowed/added rather than the entire amount. Whilst concluding so, it is made clear that we have duly taken into account the fact that the assessee is a trader than manufacturer so as to arrive at the above disallowance percentage. We accordingly direct the Assessing Officer to restrict the impugned disallowance @15%. It is made clear that our instant .....

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