9911796707
TMI Blog2023 (9) TMI 500X X X X Extracts X X X X X X X X Extracts X X X X ..... extent of bringing the gross profit rate on purchases and not the entire amount paid. Since both the authorities, i.e., the CIT(A) and the ITAT have held that it is not the entire sales consideration which is to be brought to tax, but only the profit attributable on the total sales consideration which alone can be subject to income-tax, the view taken by the authorities, in our view, is a reasonable and possible view. Therefore, Appeals dismissed. X X X X Extracts X X X X X X X X Extracts X X X X ..... t Rs. 1,49,27,100/- after making certain additions/disallowances. AO disallowed the entire amount of purchases made from the suspicious dealers in all the three years by treating them as 'bogus purchases'. For Assessment Year 2010-2011 it was Rs. 84,01,498/-. Assessee impugned the assessment order dated 29th November 2013 before the Commissioner of Income Tax (Appeals) ("CIT(A)"). The CIT(A) partly allowed the Appeal vide an order dated 18th November 2015. This was challenged by the Revenue before the Income Tax Appellate Tribunal ("ITAT"). The ITAT vide its order dated 22nd September 2017 partly allowed the Appeal of Revenue. This Appeal has been filed challenging the legality and validity of the impugned order passed by the ITAT to the ex ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the extent of 12.50% of the value of alleged bogus purchases. 6. The common impugned order of ITAT is for Assessment Years 2009-2010, 2010-2011 and 2011-2012. 7. There are innumerable judgments of this Court and other High Courts where the Courts have held that the ITAT was correct in restricting the addition limited to the extent of bringing the gross profit rate on purchases and not the entire amount paid. 8. Since both the authorities, i.e., the CIT(A) and the ITAT have held that it is not the entire sales consideration which is to be brought to tax, but only the profit attributable on the total sales consideration which alone can be subject to income-tax, the view taken by the authorities, in our view, is a reasonable and possible vi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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