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TMI Blog2024 (9) TMI 634X X X X Extracts X X X X X X X X Extracts X X X X ..... 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, sho ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essee produced books of accounts, sale purchase register along with sale and purchase invoices to show that the purchases are genuine. The reply of the assessee did not find any favour with the AO who proceeded by making addition of Rs. 25,20,244/-. The assessee carried the matter before the ld. CIT(A) but without any success. 4. Before us the ld. Counsel for the assessee contended that even if t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unal, therefore, correctly restricted the additions limited to the extent of bringing the G.P. rate on purchases at the same rate of other genuine purchases. The decision of the Gujarat High Court in the case of N.K. Industries Ltd. (supra) cannot he applied without reference to the facts. In fact in paragraph 8 of the same Judgment the Court held and observed as under- "So far as the question ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 ad ..... X X X X Extracts X X X X X X X X Extracts X X X X
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