9911796707
TMI Blog2019 (9) TMI 1697X X X X Extracts X X X X X X X X Extracts X X X X ..... of such bogus/unsubstantiated purchases by the assessee, as held in the case of 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. Thus set aside the matter to the file of the assessing officer with the direction to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ned upon receipt of information from the sales tax Department that assessee has made bogus purchases. The assessee submitted the purchase vouchers and the payments were made through banking channel. However the suppliers were not produced before the assessing officer. Sales in this case were not doubted. 3. The income tax officer in this case has made 12.5% addition on account of bogus purchase ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on no 2860, order dt. 18.6.2014). In this case the honourable High Court has upheld hundred percent allowance for the purchases said to be bogus when sales are not doubted. However in that case all the supplies were to government agency. 6. In the present case the facts of the case indicate that assessee has made purchase from the grey market. Making purchases through the grey market gives the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion 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 add the assessee should be granted adequate opportunity of being heard. Learned Counsel of the assessee fairly agreed to the above proposition. 8. In the result assessee's appeal is partly allowed. Order has been pronounced in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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