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TMI Blog2020 (1) TMI 1314X X X X Extracts X X X X X X X X Extracts X X X X ..... d undischarged. Thus the additions which could be sustained, would be to account for profit element embedded in these purchase transactions to factorize for profit earned by assessee against possible purchase of material in the grey market and undue benefit of VAT against such bogus purchases, which learned CIT(A) has rightly done. However, keeping in view the fact that the assessee was dealing in thin margin item like iron steel and the assessee reflected Gross Profit Rate of 3.27%, we estimate the additions @2% of alleged bogus purchases - Appeal stands partly allowed. - I.T.A. No.2606/Mum/2016, I.T.A. No.2605/Mum/2016, I.T.A. No.2604/Mum/2016 - - - Dated:- 7-1-2020 - HON BLE SHRI MAHAVIR SINGH, JM AND HON BLE SHRI MANOJ KUMAR AG ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at ₹ 221.20 Lacs after sole addition of alleged bogus purchases of ₹ 218.12 Lacs as against returned income of ₹ 3.07 Lacs filed by the assessee on 24/09/2008 which was processed u/s 143(1). 2.2 Pursuant to receipt of certain information from DGIT (investigation), Mumbai, the assessee was subjected to survey action resulting into impounding of some incriminating documents indicating purchases by assessee from bogus parties. Accordingly, the case was reopened vide issuance of notice u/s 148 on 12/03/2013 which was followed by notice u/s 142(1) directing assessee to file the requisite information / evidences. 2.3 Upon perusal of information / documents, it transpired that the assessee obtained accommodation purchase ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er achieved by the assessee has not been disputed by the revenue. The books of accounts were subject to audit. However, at the same time, the assessee miserably failed to substantiate the purchases and could not produce any of the suppliers to confirm the transactions and field inquiries indicated that none of the suppliers was existing at the given addresses. Therefore, the onus casted upon assessee, in this regard, remained undischarged. Hence, on the given facts and circumstances, the additions which could be sustained, would be to account for profit element embedded in these purchase transactions to factorize for profit earned by assessee against possible purchase of material in the grey market and undue benefit of VAT against such bogu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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