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TMI Blog2018 (8) TMI 2157X X X X Extracts X X X X X X X X Extracts X X X X ..... ar disallowance @ 6.5%. As the Gross Profit declared by assessee for the year @ 5.76%. We are of the view that disallowance @ 6.5% would be sufficient to avoid the possibility of revenue leakage. Therefore, we direct the Assessing Officer to restrict the disallowance on account of bogus purchases @ 6.5%. 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 ..... he addition of 12.5% on account of non-genuine purchases as profit element embedded in such tainted purchase. On appeal before the ld. CIT(A), the re-opening as well as the disallowance under section 69A on account of bogus purchases was sustained. Therefore, further aggrieved by the order of ld. CIT(A), the assessee has filed the present appeal before us. 3. We have heard the ld. Authorized Representative (AR) of the assessee and ld. Departmental Representative (DR) for the Revenue and perused the material available on record. Ground No. 1 relates to the validity of re-opening. The ld. Ld. AR of the assessee has not argued anything against the ground no.1, therefore, ground no.1 of the appeal is treated as not pressed and consequently dis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re-assessment, the Assessing Officer asked the assessee to substantiate the genuineness of purchases and corresponding sales of the goods/material. The assessee filed his written submission dated 12.03.2015. Along with written submission, the assessee furnished complete details of purchases which consist of sales bill, voucher, stock register and register and entry and exit. The reply of the assessee was not accepted by Assessing Officer after considering the submission of the assessee and disallowed 12.5% of the purchases holding that only profit element embedded in such purchases is liable to disallowed. We have noted that Assessing Officer has not given any finding over the documentary evidence furnished by the assessee in respect of pu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee even otherwise had failed to substantiate the genuineness and veracity of the aforementioned purchase transactions on the basis of irrefutable documentary evidences, viz. delivery challans, transportation receipts, octroi receipts, receipt of weigh bridge for weighing of goods, excise gate pass, goods inward register maintained at godown/warehouse storage house etc., therefore, the A.O being of the considered view that the genuineness of the purchase transactions could not be verified, had thus rightly rejected the books of account of the assessee by invoking the provisions of Sec. 145(3) of the 'Act'. We find that after rejection of the books of account the CIT (A) had fairly restricted the addition in the hands of the asses ..... X X X X Extracts X X X X X X X X Extracts X X X X
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