2017 (10) TMI 1157

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....grounds of appeal: 1. "The order dated 16.01.2017 passed by the Ld. Commissioner of Income Tax (Appeals), Meerut, is bad in law and on facts. 2. That the Ld. CIT (A) has grossly erred in enhancing the income of the appellant company by Rs. 11,55,92,087/- on the alleged ground that the same represents bogus purchases from M/s A.K. Traders Group while the said amount represents only the balance of advance given by the appellant company to M/s A.K. Traders and is duly shown as recoverable in its Balance Sheet as on 31.03.2011. 3. That on the facts and circumstances of the case, the Ld. CIT (A) has erred in directing the Assessing Officer to add an amount of Rs. 1,44,721/- being commission paid to M/s A.K. Traders u/s....

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....aders and M/s G.S. Steel and such purchases were duly supported by the bills received, and the payments to the parties were made through the account payee cheques. He further submitted that in spite of furnishing the photo copies of bank statements, AO relied upon the statement obtained from one Mr. Ajay Sharma, Proprietor of M/s A.K. Traders recorded at the time of search and without furnishing the copies of the same to the assessee and without providing any opportunity to the assessee to cross examine him. Ld. AR further submitted that no documentary evidence was found during the course of search to prove that the purchases made from the parties were not genuine. The other grievance express on behalf of the assessee is that without consid....

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....oduced in support of the contention of the assessee that material was received from those two parties. He further argued that the turnover of the assessee is Rs. 29,53,52,377/-, whereas the income shown is only Rs. 28,42,385/- which is less than 1% and in the line of business of the assessee i.e. Real Estate Development, such a low profit is not possible. 4. We have carefully gone through the record. Assessment order itself reads that as against the total turnover of Rs. 29,53,52,377/-, the assessee had declared the total income of Rs. 28,42,385/- and it is certainly less than 1%. Assessee is engaged in the business of Real Estate Development and assessee does not plead any peculiar reasons for such low profit rates of less than 1% in th....