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TMI Blog2023 (9) TMI 1666X X X X Extracts X X X X X X X X Extracts X X X X ..... Tribunal. X X X X Extracts X X X X X X X X Extracts X X X X ..... 143(3) of the Act dated 20.12.2017 assessing total income at Rs.12,95,17,340/- after making addition of Rs.12,88,47,024/- and Rs.2,20,322/- on account of bogus purchases. 3.2. Aggrieved by the assessment order, the assessee preferred an appeal before the learned CIT (Appeals), Surat who vide order dated 23.07.2019 partly allowed the appeal confirming 5% of the impugned purchase i.e. Rs.64,42,351/-. 3.3. Aggrieved by the decision of the CIT (Appeals), Surat, the Revenue preferred the appeal before the Tribunal, Surat which by order dated 19.09.2022 partly allowed the appeal of the Revenue and restricted the disallowance at the rate of 6% of the disputed purchases. Revenue has therefore, preferred this appeal. 4. Having heard the learned ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ,09,62,458/-. The assessee has shown Gross Profit @ 78% and net Profit @ 0.02% (page 11 of paper Book). The assessee while filing the return of income has declared taxable income of Rs. 1,81,840/- only. We are conscious of the facts that dispute before us is only with regard of the disputed purchases of Rs. 4.34 Crore, which was shown to have purchased from the entity managed by Bhanwarlal Jain Group. During the search action on Bhanwarlal Jain no stock of goods/material was found to the investigation party. Bhanwarlal Jain while filing return of income has offered commission income (entry provider). Before us, the Ld. CIT-DR for the revenue vehemently submitted that the ratio of decision of Hon'ble Gujarat High Court in Mayank Diamond ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Tax Appeal No.674 of 2022 in Principal Commissioner of Income Tax 1, Surat vs. M/s. Surya Impex which came to be decided by the coordinate Bench on 16.1.2023 dealt with the very issue of accommodation entries provided by Bhanwarlal Jain Group. The group involved in the said case is the same group who is saddled with allegations of providing accommodation entry to the assesse. In M/s. Surya Impex (supra) the court held in favour of the assessee. The questions of law involved in the said case were of the same nature and were in the context of similar facts involving the same group." 6. On perusal of the said judgment, it appears that in case of assessee therein, the Tribunal partly allowed the appeal filed by the assessee and reduced the d ..... X X X X Extracts X X X X X X X X Extracts X X X X
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