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TMI Blog2018 (11) TMI 1909X X X X Extracts X X X X X X X X Extracts X X X X ..... ment of tax and others at the expenses of the exchequer. In such situation in my considered opinion on the facts and circumstances of the case the 12.5% disallowance out of the bogus purchases meets the end of justice - As assessee has prayed that when only the profits earned by the assessee on these bogus purchase transaction is to be taxed the gross profit already shown by the assessee and offer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 12.5% disallowance on account of bogus purchases. 2. The Assessing Officer in this case has made 12.5% addition on account of bogus purchase amounting to Rs.10,85,600/-. Upon assessee appeal Ld. CIT(A) confirmed the same. 3. Against above order assessee is in appeal before the ITAT. I have heard both the counsel and perused the records. 4. In support of his case Ld. counsel of the assessee h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... doubted, hundred percent disallowance for bogus purchase cannot be done. The rational being no sales is possible without actual purchases. This proposition is supported from Hon'ble Jurisdictional High Court decision in the case of Nikunj eximp enterprises (in writ petition no. 2860, order dt. 18.06.2014. In this case the Hon'ble High Court has upheld hundred percent allowance for the purchases sa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ected to be disallowed on account of bogus purchase. 8. Up on careful consideration, I find considerable cogency in the submission of the Ld. counsel of the assessee. Accordingly, I modify the order of Ld. CIT-A and direct that the disallowance in this case be restricted to 12.5% of the bogus purchases as reduced by the gross profit rate already declared by the assessee on these transactions. Ne ..... X X X X Extracts X X X X X X X X Extracts X X X X
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