TaxTMI 
TaxTMI 
2015 (12) TMI 378
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.... revenue has raised following grounds: "1. The Ld. CIT(A) has erred in law as well as on fact by not sustaining addition u/s 69 after having accepted the finding in principle that the purchases were made from undisclosed/unverifiable/unidentifiable parties in the grey market by investing in cash and the purchases from the group concerns of Shri Rakeshkumar Gupta & family were only accommodation entries and not actual purchases. 2. On the facts and in the circumstances of the case, the Ld. CIT(A) after having accepted the fact that the purchase made from or through Shri Rakeshkumar Gupta and his family members are bogus, erred in law in not confirming the addition at least to the extent of peak of the purchases made form such parties o....
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....ed from these parties were hand delivered by them as per the practice prevailing in the market. (ii) The payments are made through account payee cheques. (iii) it is practically not possible to collect such an old information precisely in a short span of time. However, the quantitative details of purchases and sales submitted prove the genuineness of purchases. The quantitative details in meters can be tallied from the list of opening stock, purchases and sales made during the year and closing stock. (iv) Sales and purchase are fully vouched. (v) The re-opening is bad, illegal, void and against the provisions of law". However, the Ld. AO rejected the assessee's contention and observed that assessee has not maintained day-to-d....
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....tage 4,034 Closing stock as on 31.03.2002 49,189 and came to the conclusion that, there is no sales without corresponding purchases and if the sales have not been disputed, then, the entire alleged purchases also cannot be added and therefore, addition made by the AO is not justified. However, he held that 10% of such purchases can be added in order to fill the gap of difference on gross profit for the said purchases to plug any leakage of revenue and accordingly, the addition of Rs. 1,15,668/- was made in the following manner :- "6.1 Looking at the facts and circumstances of the case as a whole, I am of the considered view that the case of justice would be met by making addition at 10% of such purchases in order to....
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....d and also sales then, there is no question of disturbing the purchases, hence no addition whatsoever should have been made. Further, as regards the information gathered during the course of survey in the case of Rakeshkumar Gupta, Ld. Counsel submitted that the entire information was based on statement of Shri Rakeshkumar Gupta which itself has been retracted by him, therefore, it has no evidentiary value, when entire evidence for the purchases have been given by the assessee. Thus no addition whatsoever could have been made on account of purchases or on account of any GP rate. 6. After considering the rival submissions and on perusal of the finding given in the impugned orders and materials on record, we find that the assessee before t....