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TMI Blog2018 (9) TMI 1982X X X X Extracts X X X X X X X X Extracts X X X X ..... hat he has paid VAT on the alleged bogus purchases, therefore, even if the profit element on the alleged bogus purchases is estimated at 12.5% but the VAT amount paid by the assessee should be reduced from such profit - HELD THAT:- Assessee should get the benefit of VAT paid on the purchases held to be nongenuine by the Assessing Officer. Accordingly, direct the Assessing Officer to verify the pay ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ; 1,15,990 on account of bogus purchases. 4. Brief facts are, the assessee, a partnership firm, is a dealer in ferrous and nonferrous metals. For the assessment year under Kanak Steel India dispute, the assessee filed its return of income on 3rd September 2011, declaring total income of ₹ 6,01,684. The return of income filed by the assessee was processed under section 143(1) of the Income T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urchase invoice, ledger account copy and bank statement, however, the Assessing Officer was not convinced with the submission of the assessee. Accordingly, he treated the purchases made by the assessee from M/s. Vinayak Steel (Impex) as nongenuine. However, considering the fact that assessee has reflected the purchases in the books of account and without such purchases sales could not have been ef ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on the decision of the learned Commissioner (Appeals). 8. Having considered rival submissions, I am of the view that the assessee should get the benefit of VAT paid on the purchases held to be nongenuine by the Assessing Officer. Accordingly, I direct the Assessing Officer to verify the payment of VAT by the assessee and reduce it from the addition made of ₹ 1,15,990 and sustain addition to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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