TaxTMI 
TaxTMI 
2017 (6) TMI 65
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....n order passed by Commissioner of Income-tax (Appeals)-10, Mumbai [hereinafter called CIT(A)] dated 28-09-2016 for AYs 2008-09, 2010-11, 2011- 12, 2012-13, 2013-14 passed against the assessment orders passed u/s 143(3), all 29-01-2016, filed on the following grounds:- "ADDITION ON THE POINT OF BOGUS PURCHASES OF Rs. 11,66,646/- The Ld. Commissioner of Income-tax (Appeals) erred in restricting the addition on the point of bogus purchases to 8% of total purchase amounting to Rs. 1,45,82,956/- i.e. Rs. 11,66,636/- instead of deleting it in toto. Hence we request your honour to delete the addition and obliges." 3. The brief background of the case is that during the year the assessee company was engaged in the business of tr....
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....iple, but with regard to the rate of addition, the AO increased it to 12.5% of bogus purchases. Accordingly in the assessment order, addition was made @ 12.5% of the alleged bogus purchases of Rs. 1,45,82,956/- which worked about to Rs. 18,22,870/-. 4. Being aggrieved, the assessee filed appeal before CIT(A) wherein detailed submission were made. It was submitted that complete detailed and evidences were furnished to show that purchases were genuine. It was also submitted that the statement made by Mr. Rajendra Jain was made under pressure and therefore, the same was subsequently retracted. However, Ld. CIT(A) did not agree with the submissions of the assessee fully on the ground that assessee had himself made the offer to make addition ....
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....sessee vehemently contested the addition made in the hands of the assessee. It was submitted by him that offer to make addition given to AO was under extreme circumstances due to undue pressure felt by the assessee and was made only to reduce litigation. However, the purchases are genuine. In support of his claim detailed submissions were made by him and brief notes were also submitted. The arguments were made by him in support of his claim that purchases are genuine can be summarized as under: 1. Asses see has all bills of purchases. 2. All payment made thought account payee cheque. 3. Supplier provided all identity to bank following KYC Norms. 4. Assessee has stock register and all quantity is recorded ....
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....al in the case of Sri Madhukant Gandhi v. ITO (1950/M/2009) for AY 2005-06, dated 23/2/2010. It was submitted that the addition made by the AO and sustained by the Ld. CIT(A) @ 8% has led to exorbitant amount of profit which is not possible in this line of business. Therefore, in the interest of justice and fair play, the addition should be computed in fair and justified manner. 7. Per contra, Ld. DR relied upon the orders of lower authorities and requested for upholding the order of Ld. CIT(A). 8. We have gone through the facts and circumstances of the case and orders of the lower authorities and also submissions made by both the sides before us. It is noted that in this case, the assessee himself has offered the addition to be made ....