2016 (12) TMI 550

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....s is an appeal filed by the revenue against the order dated 06/02/2015 passed by the learned C.I.T.(A)-2, Jaipur for A.Y. 2010-11. The effective ground of the appeal is as under:- Ground in A.Y. 2010-11 "Whether on the facts and in the circumstances of the case and in law the ld CIT(A) has erred in directing to restrict trading addition to Rs. 7,85,442/- i.e. 15% of bogus purchases as ....

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.....Y. 2007-08, 2008-09, 2009-10 and 2010-11, it came to light that the average gross profit was not calculated correctly inasmuch as the trading additions made for A.Y. 2007-08, 2008-09 and 2009-10 were not taken into consideration while adopting the average of GP rate. Therefore, the Assessing Officer gave show cause notice U/s 154 of the Act. It was contended by the assessee before him that the ap....

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....purchases, which was worked out to Rs. 13,09,070/- by relying upon the decision of Hon'ble Gujarat High Court in the case of M/s Sanjay Oilcake Industries Vs CIT (2008) 10 DTR (Guj) 153 and the order of the ld CIT(A) in the case of assessee for A.Y. 2008-09. The ld Assessing Officer has also applied average GP rate of last 5 years, which was worked out at 6.06%, on the basis of the book results. A....

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....d. Since the trading addition on disallowance of 15% of unverifiable purchases had been sustained and trading addition on account of average GP rate of the last five years had not been sustained. Accordingly, he deleted the addition made U/s 54 of the Act. 4. Now the revenue is in appeal before us. The ld DR has vehemently supported the order of the Assessing Officer. 5. At the outset, the l....