9911796707
TMI Blog2024 (9) TMI 634X X X X Extracts X X X X X X X X Extracts X X X X ..... ant : Shri Rahul Sarda, A/R For the Respondent : Shri R.R. Makwana, Sr. D/R ORDER PER NARENDRA KUMAR BILLAIYA, AM : This appeal by the assessee is preferred against the order dated 07/06/2024 by NFAC, Delhi [in short ld. CIT(A)], pertaining to AY 2012-13. 2. The sum and substance of the grievance of the assessee is that ld. CIT(A) erred in confirming the addition of Rs. 25,20,244/- being alleged bogus purchases. The assessee claims that the addition, if any, should be restricted to the margin of profit imbibed in the alleged purchases. 3. Briefly stated the facts of the case are that the assessee filed its return of income declaring income at Rs. 1,62,630/-. Subsequently, the AO received information from the DGIT (Inv.), Mumbai, that, a sea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the tune of Rs. 1.55 Crores and only purchase of Rs. 25.50 Lakhs is disputed whereas sales of Rs. 1.65 Crores have been accepted as such. The entire trading result can be understood from the following chart:- 6. The gross profit rate as show by the assessee in its audit report Form 3CD is 6.19%. The Hon ble High Court of Bombay, in the case of PCIT vs. Mohommad Haji Adam Co. reported in [2019] 103 taxmann.com 459 (Bombay), under identical situation, held as under:- 8. In the present case, as noted above, the assessee was a trader of fabrics. The A.O. found three entities who were indulging in bogus billing activities. A.O. found that the purchases made by the assessee from these entities were bogus. This being a finding of fact, we have pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be deducted and tax cannot be levied on the same price. We have to reduce the selling price accordingly as a result of which profit comes to 5.66%. Therefore, considering 5.66% of Rs. 3,70,78,125/- which comes to Rs. 20,98,621.88 we think it fit to direct the revenue to add Rs. 20,98,621.88 as gross profit and make necessary deductions accordingly. Accordingly, the said question is answered partially in favour of the assessee and partially in favour of the revenue. 9. In these circumstances, no question of law, therefore, arises. All Income Tax Appeals are dismissed, accordingly. No order as to costs. 7. Considering the gross profit rate in the light of the decision of the Hon ble Bombay High Court, we direct the AO to restrict the addition ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
