2020 (2) TMI 1722

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..... rchase transaction is to be taxed the gross profit already shown by the assessee and offered to tax should be reduced from the standard 12.5% being directed to be disallowed HELD THAT:- We modify the order of learned CITA and direct that the disallowance in this case be restricted to 12.5% of the bogus purchases as reduced by the gross profit rate already declared by the assessee on these transact .....

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..... in this case has made 12.5% addition on account of bogus purchase amounting to Rs. 8,42,142/- for A.Y. 2010-11 and Rs. 1,44,620/- for A.Y. 2011-12. The Assessing Officer made the addition only on the basis of information from sales tax department. He did not even issue notices to the alleged bogus suppliers. 3. Upon assessee s appeals Id CIT-A confirmed the same. 4. Against above order assessee is .....

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..... ogus when sales are not doubted. However in that case all the supplies were to government agency. 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 assessee savings on account of non-payment of tax and others at the expense of the exchequer. In such situation in my considered opinion on the fa .....

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