2017 (11) TMI 204

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....s of law are referred for consideration by this Court. (1) Whether on the facts and in the circumstances of the case, the Tribunal is justified in upholding the order of CIT(A) in deleting the addition of Rs. 1,62,14,438/- being liability outstanding against purchases which were not genuine but bogus ? (2) Whether on the facts and in the circumstances of the case, the Tribunal is justified in upholding the order of the CIT(A) in deleting the extra profit addition of Rs. 8,55,725/- made by the A.O. by applying a G.P. rate of 8% instead of 6.2% as disclosed by the assessee ? Heard Sri Subham Agarwal, learned counsel for the department and Sri Sakeel Ahmad, learned counsel representing the assessee-respondent. The issue involved in the....

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....s such had deleted the same. For the ready reference the observation of the CIT(Appeals) is being quoted hereinbelow; "4. I have considered the submissions and verified the facts. I find that system as analysed by the counsel for the appellant is true and this is real trade practice in Banarasi saree business. Appellant has purchases and proper record of thses purchases in purchase bahi and subsequently in Ledger of different karigars are recorded. Perfect record in this respect has been maintained. It is also true that appellant is selling goods on credit to various persons who pay after prolonged time. It is also true that what-ever unpaid purchases are there are recorded as liability. I do not understand when part of purchase has been ....