9911796707
TMI Blog2025 (1) TMI 100X X X X Extracts X X X X X X X X Extracts X X X X ..... 2. The issues involved in both the years are common therefore, same are being disposed of by way of this consolidated order. 3. In this case the addition has been made on account of bogus purchases made from following two parties in A.Y.2016-17 and 2018-19. 2016-17 Sr. No. Name of the Entity Amount of Purchases (Rs.) 1. SVG Style & Textile Company Pvt. Ltd. 27,69,63,221/- 2. Rathi Style & Textile Pvt. Ltd. 24,14,51,251/- Total 51,84,14,472/- 2018-19 Sr. No. Name of the Entity Amount of Purchases (Rs.) 1. SVG Style & Textile Company Pvt. Ltd. 46,94,54,017/- 2. Rathi Style & Textile Pvt. Ltd. 3,25,59,928/- Total 50,20,13,945/- 4. The return of income was filed u/s.139(1) for A.Y.2016-17 on 12/10/2016 decla ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the manufacturing process. The appellant has submitted that the details of purchases made from non-genuine parties and its corresponding sales before the AO along with gross profit earned on them and gross profit earned on remaining trading transactions. The A.O has not doubted the sales of the appellant. Hence, in the facts of the case, the decision of Hon'ble Bombay High court in case Mohommad Haji Adam & Co as discussed above is applicable. As there is no allegation with respect to evasion of sales tax/GST, the other decisions restricting the percentage profit are not applicable. 14.8 As per the gross profit working submitted by the appellant, the gross profit shown on the sales made out of non-genuine purchases is 1.10% as compare ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... been disputed. It is for this reason ld. AO had applied GP rate of 12.5% on the purchases. The ld. CIT (A) following the judgment of the Hon'ble Bombay High Court held that the GP rate on purchases which have been accepted to be genuine is to be applied on alleged bogus purchases. From the perusal of the material placed on record and the submissions made before the ld. CIT (A), it is seen that assessee is dealing in the business of manufacturing of fabrics as well as trading in fabrics. It had made fabric purchases of more than Rs. 49.80 Crores. The only purchases made from these two parties have been doubted on which GP rate has been applied. The assessee to prove the genuineness of the purchases made from both the parties has produced the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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