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TMI Blog2024 (4) TMI 882X X X X Extracts X X X X X X X X Extracts X X X X ..... e assessee, there are certain other expenses and credit of the taxes and duties which is required to be added to the total income of the assessee. We deem it appropriate and fit to adopt the addition to the extent of 4% of bogus purchases in the hands of the assessee. Appeal of the assessee is partly allowed. X X X X Extracts X X X X X X X X Extracts X X X X ..... s. (d) Treating the same as unproved purchases even though the payment for purchases is made from the books and cannot be termed as unproved. (e) Relying only upon information received from MAHAVAT Department. (f) Not providing cross-examination of suppliers. 3) The Assessing Officer wrongly charged interest u/s 234 and Initiated penalty u/s 271(1)(c)" 03. The assessee is a company engaged in trading in Iron, Steel and Pipes. It filed its return of income on 25th September, 2009, at a total income of ₹ 67,87,625/-. The return was revised on 11th November, 2009 at a total income of ₹ 44,46,545/-. The assessment under Section 143(3) of the Act was made on 21st November, 2011, at a total income of ₹ 49,46,550/-. 04. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ee and relying on several judicial precedents found that these purchases are bogus. He further asked the assessee to submit the quality and quantity wise details and their corresponding consumption and sales. Assessee submitted such details therefore, the learned Assessing Officer made the addition of ₹ 1,93,61,702/- on account of bogus purchases and computed the total income at ₹ 2,43,08,252/- by passing an assessment order under Section 143(3) read with section 147 of the Act on 30th March, 2015. 05. On appeal before the learned CIT (A), the learned CIT (A) held that the entire purchases cannot be added to the total income but only the profit element is required to be added. He restricted the disallowance/ addition to the ext ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e order, when the learned Assessing Officer asked the assessee to show the quantity and quality wise details of purchase and their corresponding consumption and sales, assessee produced the same. There is no infirmity found in those details. Therefore, it is apparent that assessee has purchased material from party A and procured bogus bills of the same material from party B. In this circumstance all the judicial precedents cited before us shows that only profit element embedded therein should be added. Therefore, the learned Authorized Representative has submitted that the profit element in case of assessee in Steel and Pipe business is merely 2 to 3 %. Therefore, in view of the above facts, over and above the normal profit earned by the as ..... X X X X Extracts X X X X X X X X Extracts X X X X
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