ITAT affirms CIT(A) ruling for assessee, rejecting Revenue's appeal on bogus purchases & profit margin.

The ITAT upheld the CIT(A)'s decision in favor of the assessee, dismissing the Revenue's appeal due to lack of evidence of bogus purchases and reasonable profit margin. The judgment aligned with a previous case involving similar facts, resulting in the dismissal of both the Revenue's and assessee's appeals regarding AY 2009-10.

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Issues:
Cross-appeals by Revenue and assessee against CIT(A) order for AY 2009-10.

Analysis:
The Revenue's appeal contested the deletion of a disallowance of Rs. 23,20,713, representing 15% of total purchase. The assessee's appeal challenged the CIT(A)'s directive to adopt a net profit rate of 2% of turnover instead of the 0.64% declared by the assessee. The assessee's counsel argued that the issue mirrored a previous case, and referred to a specific ITAT order supporting the assessee's position. The ITAT upheld the CIT(A)'s decision in favor of the assessee, emphasizing the lack of evidence of bogus purchases and the reasonable profit margin. The Revenue failed to provide contrary evidence, leading to the dismissal of their appeal. The judgment aligned with a previous case involving similar facts, thus dismissing both the Revenue's and assessee's appeals.

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