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TMI Blog2021 (4) TMI 1332X X X X Extracts X X X X X X X X Extracts X X X X ..... ff. Accordingly, we set aside the finding of the CIT(A) on the issue and restrict the addition to the extent of 5% of the bogus purchase only which includes 4.38% profit upon the bogus purchase declared by the assessee. Accordingly, we restricted the addition to the extent of 5% of the total bogus purchase and decide these issues in favour of the assessee against the revenue. X X X X Extracts X X X X X X X X Extracts X X X X ..... AT without putting on records any material evidence that the appellant have obtained the bills from grey market, whereas the such purchases were duly reflected in Annexure J 1 of form 704 being VAT Audit report. The appellant prays that the appeals prayed for be admitted and allowed and additions confirmed by the CIT (A) be deleted. The appellant craves leave to add, to alter or to amend any of the grounds of appeal at or before the time of hearing." 3. The brief facts of the case are that the assessee filed its return of income on 25.05.2011 declaring total income to the tune of Rs.9,13,855/- for the A.Y.2011-12. The return was processed u/s 143(1) of the Act. Thereafter, the assessment of the assessee was reopened on the basis o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... V Navdeep Trading Corpn AAAPV4487A 2010-11 1113862 19 27650686108V Aarco Enterpries AQRPB8274G 2010-11 602438 20 27450723466V Abhilasha Sales P. Ltd. AAHCA8220G 2010-11 611852 21 27600666493V Toral Enterprises AAIPS3611F 2010-11 739028 22 27550632037V Jain Corporation AAEPN7101P 2010-11 2461685 23 27790723085V Ashley Traders Pvt Ltd. AAHCA8221H 2010-11 604631 24 27860154093V Siddhi Enterprises AHUPK6877A 2010-11 1050141 25 27950092109V Ghatalia Steels/Divine Enterprises AALPG1552E 2010-11 1365300 26 27580726450V Meridian Trading Co. AZGPS2040D 2010-11 113535 27 27910742807V Chehar Trading Pvt. Ltd. AADCC8422G 2010-11 589500 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the CIT(A) in question. Before going further, we deem it necessary to advert the finding of the CIT(A) on record.:- "5.3 I have considered the assessment order, the Remand Report and the submissions of the appellant including the case laws cited. The AO held in the Remand Report that the appellant produced IT Returns, balance Sheet, P&L account with tac audit report, receipts issued by the Sales tax department for impounding the books, stock register showing the item wise purchases and sales, the details with regard to purchases made from the parties, ledger accounts and copies of bank statement in Union Bank of India lnduslnd bank indicating the payment made to the seller parties. It is noticed that the AO gave no adverse finding with ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... red in the stock to inflate the raw material. Therefore, the decision of the Supreme Court in the case of N K Proteins Ltd 250 taxman 22(SC) would not apply to the case. Therefore, the saving on account of VAT and other incidental charges made by the appellant on the said purchase bills obtained can be brought to tax as additional profit. The assessee filed a copy of the appeal order for AY 2009-10 and submitted that the same profit may be adopted for this year also. Keeping in view the totality of facts and circumstances of the case, the addition is restricted to 5% of bogus purchases. Accordingly, the addition to the extent of 5% of bogus purchases of Rs.3,12,24,345, which comes to Rs.15,61,217 is sustained. The AO is directed to modify t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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