9911796707
TMI Blog2018 (12) TMI 1830X X X X Extracts X X X X X X X X Extracts X X X X ..... e addition, which could be made, was to account for profit element embedded in these purchase transactions to factorize for profit element earned by assessee against possible purchase of material in the grey market and undue benefit of VAT against alleged bogus purchases, which lower authorities have rightly done. Considering GP rate of 10.59% already reflected by the assessee as well as VAT rate applicable to the goods being dealt with by the assessee, we find the estimation to be on the higher side and therefore, we restrict the same to 3% of alleged bogus purchases of ₹ 1,87,08,961/-. The same comes to ₹ 5,61,269/-. - AO is directed to re-compute the income of the assessee in terms of our above order. - I.T.A. No. 1862/M ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted, inter alia by: a) a failure to consider and to adjudicate upon the Grounds of Appeal filed in the appeal before him. b) a non consideration of the Grounds of Appeal and the Statement of Facts filed in the appeal before him. c) a non consideration of the written submission filed by the Appellant before him. d) non application of mind and a failure to consider the evidence and the material on record. e)allegations which are factually incorrect and contrary to the material and evidence before him, eg: i.that the only single issue related to suppressed profit in view of inflated purchases. ii.that adequate opportunity was provided by the AO to the Appellant. iii.the appellant failed to establish its onus of establis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... submitting that goods were sold to the customers and the payments to suppliers were through banking channels. At the same time, the assessee expressed inability to produce any of the suppliers. The factual matrix led the Ld. AO to believe that the assessee failed to discharge the primary onus casted upon to substantiate the purchases and came to conclusion that only paper bills were obtained by the assessee without actual delivery of material to reduce the gross profit by inflating the purchases. Finally, relying upon various judicial pronouncements, the estimation against these bogus purchases has been made @14.29% which resulted into an addition of ₹ 26.73 Lacs in the hands of the assessee. The stand of Ld. AO, upon confirmation by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... idered opinion that the assessee was engaged in trading activities, which could not be carried out without actual purchase of material. The turnover achieved by the assessee has not been disputed or disturbed by the revenue and the payments were through banking channels. The assessee was in possession of primary purchase documents and was able to reconcile the quantitative details. However, at the same time, the stated purchases were under grave doubt since the assessee could not produce any of the party to confirm the transactions and the information received from investigation wing revealed that all the suppliers were engaged in carrying out only paper transactions without actual delivery of material. The complete onus to prove the purcha ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
