9911796707
TMI Blog2020 (10) TMI 553X X X X Extracts X X X X X X X X Extracts X X X X ..... t ITAT has considerably lowered the disallowance on account of bogus purchase. Accordingly, we direct that disallowance in this case be restricted to 10% of the bogus purchases. Additions on account of mismatch in 26AS (TDS) statement and accounting entries on account of contract report - submission of assessee that difference reflected in 26AS statement is a mistake, however, no evidence has been submitted - HELD THAT:- Merely stating that there is a mistake cannot suffice. The issue needs proper verification at the level of AO. Hence, we remit this issue the file of AO to examine has assessee s submission that the said receipt reflected in 26AS statement is factually incorrect. The assessee should be granted adequate opportunity of b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... AO has noted that the said party has responded denying any transaction the assessee. Furthermore, AO has also made addition of ₹ 4,76,739/- on account of contract received reported in 26AS statement which was not reflected in the assessee s recounts. Assessee in this regard has submitted before the Ld. CIT(A) that a sum of ₹ 1,01,606/- being receipt from the contract has already been accounted for. The Ld. CIT(A) granted relief to this extent and confirmed the rest. Against the above order assessee is in appeal before the ITAT. 3. We have heard both the counsel and perused the records, upon careful consideration, we find that assessee has provided the documentary evidences for the purchase. Adverse inference has been drawn du ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wance on account of bogus purchases should be done by reducing the gross profit already disclosed from the standard 12.5% disallowance being done. Furthermore, Hon ble Jurisdictional High Court in the case of Adam H Kazi has held that the disallowance regarding bogus purchases should be restricted to the difference between gross profit on normal purchases and purchases through bogus routes. Furthermore, we also note that several decisions that ITAT has considerably lowered the disallowance on account of bogus purchase. Accordingly, we direct that disallowance in this case be restricted to 10% of the bogus purchases. The ld. Counsel of the assessee fairly agreed to the above. 5.1 The other issue relating to addition sustained on account o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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