2020 (12) TMI 610

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..... that as held in M Haji Adam Co [ 2019 (2) TMI 1632 - BOMBAY HIGH COURT ] the addition in respect of bogus purchases is to be limited to the extent of bringing the gross profit rate on such purchases at the same rate as of other genuine purchases. We respectfully following the aforesaid judgement of the Hon ble High Court set aside the matter to the file of the assessing officer with the direction to restrict the addition as regards the bogus purchases by bringing the gross profit rate on such bogus purchases at the same rate as that of the other genuine purchases.
SHRI SHAMIM YAHYA, AM AND SHRI VIKAS AWASTHY, JM Appellant by : None Respondent by : Shri Gurbinder Singh ORDER Per Shamim Yahya, A. M. These are four appeals by the as .....

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..... re, he referred to the observation in tax audit report that it is not possible to maintain quantitative detail of stock. He proceeded to reject the books of accounts and make the disallowance of 100% of the purchases. He did not doubt the sales. He did not issue any notice to the alleged bogus suppliers u/s.133(6) despite written request from the assessee. He drew adverse inference for the assessee having failed to produce the alleged bogus suppliers before him. 6. Upon the assessees appeal, the ld CIT(A) noted that the disallowance made by the assessing officer would result in following gross profits which are not sustainable: A.Y. Resultant gross profit 2009-10 73.66% 2010-11 62.03% 2011-12 40.20% 7. Thereafter, placing .....

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..... by the assessee, we find that as held by Hon'ble Bombay High Court in its recent judgement in the case of Principle Commissioner of Income Tax vs. M Haji Adam & Co (in ITA No. 1004 of 2016 dated 11/2/2019 in paragraph 8 there off) ,the addition in respect of bogus purchases is to be limited to the extent of bringing the gross profit rate on such purchases at the same rate as of other genuine purchases. 11. We respectfully following the aforesaid judgement of the Hon'ble High Court set aside the matter to the file of the assessing officer with the direction to restrict the addition as regards the bogus purchases by bringing the gross profit rate on such bogus purchases at the same rate as that of the other genuine purchases. Needless to .....

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