9911796707
TMI Blog2024 (11) TMI 680X X X X Extracts X X X X X X X X Extracts X X X X ..... fied in restricting the addition made by the A.O. without appreciating the fact that assessee is one of the beneficiary of accommodation entry provided by Bhanwarlal Jain Group concerns exclusively engaged in the business of issuing non-genuine purchase bills? ii. Whether on the facts and in law, the Ld.CIT(A) has failed to uphold the decision of Hon'ble Apex Court in the case of N.K. Proteins Ltd. Vs. DCIT in SLP(Civil) No.769/2017 dated 16.01.2017 where 100% of addition was confirmed by the Apex Court? iii. Whether on the facts and in the circumstances of the case and in law, the Ld.CIT(A) is justified in directing the AO to compute the addition/disallowance only to the extent of bringing the G.P. rate of alleged bogus purchases a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... port invoices and payments were received through bank before the AO as well as in appellate proceedings also. The appellant stated that the AO has added the entire purchases from the above two parties in the total returned income however, the sale is accepted by the AO. It is correct that though AO has rejected the books of accounts but the exports arising out of same purchases can not be ignored in absence of any specific adverse finding. Once sale has been accepted as genuine, the purchase has to be in reckoning only issue may be left for decision is whether purchases are from same parties or not. 6.7 The above submissions filed by the appellant and other facts of the case are carefully perused. It is found from the records that both th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nsured that the addition/disallowance only to the extent of bringing the G.P. rate of alleged bogus purchases at the same rate as that of the genuine purchases as declared by the appellant only after verifying the records with respect the above ground raised by the appellant, the necessary order will be passed and re-compute the total income accordingly. With the above direction, the Ground No. 2 is partly allowed for statistical purpose." 3. We have heard rival submissions of the parties and perused the relevant material on record. Before us, the Ld. Departmental Representative (DR) referred to Ground No. 2 of the appeal and submitted that the Ld.CIT(A) has failed to follow the decision of the Hon'ble Supreme Court in the case of N.K. Pro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cannot be considered as court's endorsement of acceptance of the correctness of the decision being filed against. Further, the Hon'ble Supreme Court in the case of Employees Welfare Association vs. Union of India and another AIR 1990 SC334, observed that - when the Hon'ble Supreme Court dismissed the Special Leave Petition and provides the reason under Article 136, that decision becomes binding under Article 141, but, if the Special Leave Petition is summarily dismissed without any reasons given, it does not establish any law under Article 141. The relevant finding of Hon'ble Supreme Court is reproduced as under: "22. It has been already noticed that the Special Leave petitions filed on behalf of the Union of India against the said judgm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... simliciter, it cannot be said that there has been a declaration of law by this Court under Article 141 of the Constitution."
5. In view of the above, we do not find any infirmity in the order of the Ld.CIT(A), in following the binding precedent in the case of M/s. Mohd. Haji Adam & Co., (supra) of the Hon'ble jurisdictional High Court, instead of following the decision of the Hon'ble Gujarat High Court in the case of N.K. Proteins Ltd., vs. DCIT, (2016) (6) TMI 1139, SLP against which has been dismissed by the Hon'ble Supreme Court summarily. Accordingly, the grounds raised by the Revenue are dismissed.
6. In the result, the appeal of the Revenue is dismissed.
Order pronounced in the open court on 13th September, 2024 X X X X Extracts X X X X X X X X Extracts X X X X
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