9911796707
TMI Blog2022 (10) TMI 1218X X X X Extracts X X X X X X X X Extracts X X X X ..... roceedings the assessee has failed to make any compliance in spite of opportunity provided by the ld. CIT(A). The assessee had failed to furnish the confirmation from the sundry creditors. These facts demonstrate that the assessee had failed to furnish even basic document like confirmation from the creditors before the lower authorities, therefore, we don t find any reason to interfere in the decision of ld. CIT(A). Disallowance out of household expenses and other miscellaneous expenses we find that the A.O has not substantiate the reason for such disallowance with relevant break up and defect in the nature of detail submitted by the assessee during the course of assessment proceedings, therefore, we consider that decision of ld. CIT(A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .50% of the alleged bogus purchases of Rs. 33,37,160, based on the information available on the web site of sales tax department called Revised List of Hawala Parties. The estimated profit @ 12 50% is on a higher side. 3. On the facts and in circumstances of case and in law, the Ld. CIT(A) erred in estimating the profit from alleged Hawala purchases being Rs. 5,00,471/@ 12.50% of the alleged bogus purchases of Rs. 40,03,764/- based on the information available on the web site of sales tax department called Revised List of Hawala Parties. The estimated profit @ 12.50% is on a higher side. 4. On the facts and in circumstances of case and in law, the Ld CIT(A) erred in disallowing 100% of alleged Hawala purchases based on the infor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he whole of the alleged bogus purchases, 9. The Ld CIT(A) has erred on the facts of the case by not appreciating the effect of the addition in totality on the resulting rate of Gross Profit which, under normal circumstances, is highly unrealistic in any line of business activity. 10. The Ld. CIT(A) has erred in law by not adopting the theory of contemporary correlation by ignoring the inevitable consequences, incidents and corollaries which must inevitably have flowed when an imaginary state of affairs has been treated as real. 11. The above grounds of appeal are supplementary or complimentary to the other grounds of appeal and not to the exclusion of any other ground of appeal. 12. The appellant craves to leave to amen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y have also not made any compliance with the notices issued by the A.O. The assessee was asked to produce these parties before the A.O to prove the genuineness of transaction, however, the assessee had not made any compliance. Accordingly, the A.O had disallowed Rs. 65,17,345/- on account of unexplained sundry creditors. 4. During the course of assessment the A.O has also noticed that assessee had debited various expenses incurred in cash to the profit and loss account and proper bills and vouchers were not maintained such expenses i.e conveyance Rs. 32,540/-, staff welfare Rs. 5450/-, stamp duty Rs. 9000/- sundry expenses Rs. 6750/-, diesel and truck of Rs. 2,17,650/-etc. Therefore, the A.O has made addition of Rs. 50,000/- on account o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ents in the form of delivery challan, lorry receipt stock register in support of such purchases, therefore we don t find any reason to interfere in the decision of ld. CIT(A) in restricting such purchases to the extent of 12.5% of the purchase amount. However, in respect of Abhishek Enterprises the ld. CIT(A) has sustained the full amount of purchases of Rs. 6,35,022/-. The ld. CIT(A) had restricted the addition to the extent of 12.5% in respect of bogus parties who had ven not made compliance to the notices issued, therefore, we restrict the addition in respect of purchases made from Abishek Enterprises also to the extent of 12.5% of such purchases of Rs. 6,35,022/-. In respect of sundry creditors even during remand report proceedings t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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