TaxTMI 
TaxTMI 
2017 (9) TMI 1575
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.... (Appeals) -9 Mumbai dated 08.12.2016. 2. The assessee in its appeals raised the following common ground except for the change in figures: - "(1) Under the facts and the circumstances of the case of your Appellant, the Ld.CIT(A) -9 has erred in confirming the addition of Rs..5,84,527/- made by Ld.A.O. as "unexplained/unproved purchase/investments in purchase" u/s. 69 of I.T.Act, 1961". 3. The Revenue has filed cross appeal only for the Assessment Year 2008-09 contending that Ld.CIT(A) erred in directing the Assessing Officer to consider Gross Profit at 1.87% being Gross Profit rate of the assessee for the purchases from Gupta parties without considering the fact that assessee has not been able to prove actual delivery of good....
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....e Assessment Order where the observations of the Tribunal was extracted by the Assessing Officer. Referring to the said observations the Ld. DR submits that matter was restored to the Assessing Officer to prove the genuineness of the purchases and sales, supporting material has to be produced to show that the transaction in question are backed by actual delivery. The Ld.DR referring to Para 4.1 of the re-assessment submits that the assessee could not prove the physical delivery of goods as directed by the Tribunal. Ld. DR submits that it is the finding of the Assessing Officer that the purchases and sale of goods was shown on the very same day and the very same pattern was observed by the Assessing Officer on examination of other bills subm....
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....vestment capital on such purchases at 20% and accordingly estimated the disallowance in all these Assessment Years observing as under:- 5.3.6.2. A.Y. - 2006-07: I have considered the submissions of the AR and finding of the AO. It is seen that the sales are identifiable and quantitative details are available on record. The books of accounts are audited and there is no adverse reference by the auditors. The alleged bogus purchases are based on the statement and the assessment record of third part, the said persons were not available for cross examination nor the material found from the third party was made available to the appellant. It is seen that the addition is made on the basis of statement recorded during the course o....
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....TO (49 lTD 177) relief by the AR wherein it was held that purchases were made from untraceable parties and assessee made sales to a party which is recorded in the books of both parties, purchases have to be belief and deduction is to be allowed. It is seen that the CF rate is in case of appellant for these purchases comes to around 0.29% therefore it would be reasons to consider the GP @ 0.29% on unrecorded purchases which comes to Rs. 8,354/ (i.e. 28,72,536 + 8,330 = 28,80,866). Further, to invest such unexplained purchases the assessee must have invested initial capital which is not recorded in the books hence, it would be reasonable to estimate 20% of Rs. 28,80,866/- (28,72,536 + 8,330) total sale proceeds to consider unexplained initial....