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TMI Blog2021 (12) TMI 1080X X X X Extracts X X X X X X X X Extracts X X X X ..... ssee in part . - ITA.No.2544/Del./2019 - - - Dated:- 23-12-2021 - Shri R.K. Panda, Accountant Member For the Assessee : Shri Ved Jain, C.A. For the Revenue : Shri Om Prakash, Sr. D.R. ORDER This appeal filed by the Assessee is directed against the Order dated 01.03.2019 of the Ld. CIT(A)-18, New Delhi, relevant to the A.Y. 2007-08. 2. Facts of the case, in brief, are that the assessee is an individual and filed his return of income on 31.10.2007 declaring total income of ₹ 92,636/-. The return was processed under section 143(1) of the I.T. Act, 1961. Subsequently, information was received that assessee was indulged in bogus purchases/accommodation entries provided by Shri Rakesh Gupta, Shri Vishesh Gupta, Shr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ns under section 131 of the I.T. Act, 1961 to Nayyar Metal Co. And Karshini Metal of Shri Vishesh Gupta and Shri Rakesh Gupta and their statements were recorded on oath on 10.03.2015 in which they again confirmed that all the statements and affidavits given by them before ACIT, CC-10, New Delhi are true and they were providing bills of bogus purchases. Since there was no proper compliance from the side of the assessee to substantiate with evidence to the satisfaction regarding the genuineness of the purchases to the tune of ₹ 5,44,392/- made from Shree Shyam Trading Co. Vishu Trading Co., the A.O. made addition of the same to the total income of the assessee. 2.1. Before the Ld. CIT(A), the assessee apart from challenging the add ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s bad, both in the eyes of law and on facts. 2. On the facts and circumstances of the case, learned CIT(A) has erred, both on facts and in law in rejecting the contention of the assessee that the initiation of the reassessment proceedings and the reassessment order are bad, both on the facts and in law and liable to be quashed, as the statutory conditions and procedure prescribed under the statute have not been complied with. 3. (i) On the facts and circumstances of the case, learned CIT(A) has erred, both on facts and in law in rejecting the contention of the assessee that the reassessment proceedings initiated by the AO are bad in the eyes of law, as the reasons recorded for the issue of notice under section 148 are bad in the e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... CIT(A) has erred, both on facts and in law in rejecting the contention of the assessee in ignoring the fact that the quantity purchased and sold being completely tallying, the allegation that the assessee has not made purchases cannot be sustained. 7. On the facts and circumstances of the case, the learned CIT(A) has erred, both on facts and in law in confirming the addition on account of bogus purchases, despite their being adequate material and evidences brought on record by the assessee before the AO to show that the purchases and sales were made in the regular course of business. 8. On the facts and circumstances of the case, the learned CIT(A) has erred, both on facts and in law in rejecting the contention of the assessee th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arative profit rate in the same trade. He submitted that though there can be a little guess work in estimating the profit rate, but, such profit cannot be punitive. Relying on various decisions placed in the synopsis, the Learned Counsel for the Assessee submitted that the addition sustained by the Ld. CIT(A) should be deleted. 6. The Ld. D.R. on the other hand heavily relied on the order of the Ld. CIT(A). He submitted that since the assessee is involved in bogus purchases which is confirmed by the parties who has issued the bills to the assessee, the addition sustained by the Ld. CIT(A) being very reasonable under the facts and circumstances of the case the same should be upheld and the grounds raised by the assessee should be dismisse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ries/ bogus purchases and had not cooperated before the A.O. by providing the relevant details, some addition has to be made. However, 25% of the bogus purchases estimated by the Ld. CIT(A) under the facts and circumstances of this case appears to be on higher side. Considering the totality of the facts and circumstances of the case, I, restrict the same to 12.5% of the bogus purchases made by the assessee which is to be added to the total income of the assessee. Thus, the order of the Ld. CIT(A) is modified and addition is restricted to ₹ 68,049/- i.e., 12.5% of the bogus purchases of ₹ 5,44,392/-. Thus, the addition is restricted to ₹ 68,049/-. I hold and direct accordingly. Grounds raised by the assessee are partly allo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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