TaxTMI 
TaxTMI 
2011 (6) TMI 782
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.... parties. The AO noted that day to day stock inventory in terms of lot wise quality and quantity of various items were not furnished. He further observed that in a separate investigation carried out in the case of Haldia group, it was found that large numbers of bogus entities were created to issue accommodation bills without making any purchase or sales. M/s. Amar Gems, The Jewelers Creation and Glorious Gems have been shown as suppliers by the assessee and these names were figuring in the list of such bogus suppliers in the search case of Haldia group. Summons issued under section 131 to these parties at their given addresses were returned back unserved. Similarly survey conducted by BCTT Wing of the department in case of various parties ....
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....ed and also the rejection of books of account was unjustified. 5. After considering the submissions and perusing the material on record, the ld. CIT (A) noted that AO was not justified in making the addition @ 25% of unverifiable purchases. Rejection of books of account were held as correct as on account of unverifiable purchases the rejection of books was held by the Bench in various cases as correct. Thereafter, the ld. CIT (A) noted that addition, if any, can be made on the basis of past history of the case. After observing these observations, the ld. CIT (A) noted that the assessee has declared g.p. rate of 15.53% against 15.17% shown in the immediately preceding year when sales were only to the tune of ₹ 1,89,95,645/- whereas sa....