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TMI Blog2025 (1) TMI 100X X X X Extracts X X X X X X X X Extracts X X X X ..... disturbed. The sole reliance has been placed on the statement of one person who was handling affairs of these two companies and that he was providing bogus bill, addition has been made by applying higher GP rate. Nowhere has it been pointed out that in his statement he has given the name of the assessee or stated that assessee was also provided any kind of accommodation bill. Once the quantitative details of purchase and sales which tallies with the trading results and overall gross profit has been accepted and corresponding one to one sale of the purchases made from these parties alongwith delivery challans has been shown, then, no addition can be made by applying any kind of GP rate. As noted above, CIT (A) in A.Y.2016-17 has deleted the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... income of Rs. 56,67,670/-; and for A.Y. 2018-19 on 30/10/2018 declaring total income of Rs. 6,52,23,470/-. In A.Y.2016-17, the case was reopened u/s. 147 based on information received from the Office of DDIT (Inv.) Mumbai that one Shri Gopal Bhattar, Director of M/s. SVG Style Textile Company Pvt. Ltd. and another company controlled and managed by same person were providing bogus purchase bills. In his statement recorded u/s.131, he accepted that these companies are not doing any actual business and are providing bogus bills / accommodation entries to various beneficiaries. Further, it was found that assessee is one of the beneficiaries to whom bogus bills have been issued. In the assessment order, ld. AO has also incorporated a statement o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f 1.11% made on sales from genuine purchases. Accordingly, on applying the ratio of the Jurisdictional High Court in the case of Mohommad Haji Adam Co (Supra), I find that the gross profit earned on both the type of purchases are almost identical and comparable. Therefore, following the decision of Jurisdictional High Court, the addition is directed to be deleted. Accordingly, ground no. 3,4 5 of the appeal are ALLOWED. 6. Similar view was taken in A.Y.2018-19 also. Thus, the ld. CIT (A) following the principles laid down by the Hon ble Bombay High Court held that the gross profit shown on the sales made out of non-genuine purchases is 1.10% as compared to the gross profit of 1.11% made on sales from genuine purchases. Accordingly, he direc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Invoices received on account of purchases made. Copy of the Ledger Account of M/s SVG Style and Textile Company in the books of appellant Corresponding to the purchases made, payment made through the bank alongwith the copy of the bank statement. Details of corresponding sales on such purchases including quantity wise sales and purchases. Copy of delivery challans of the purchases made. 8. Once the assessee had provided the details of corresponding sales on such purchases, delivery challans and the quantity of purchases alongwith payments made through banking channels backed by invoices, then without rejecting the books of accounts or corresponding sales, the trading results and Gross Profit cannot be disturbed. The sole reliance has b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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