TaxTMI 
TaxTMI 
2018 (11) TMI 785
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....pectively. Identical grounds have been raised by the assessee and Revenue in these appeals. Therefore, these appeals were clubbed together and are being adjudicated in this composite order. Cross Appeals for the A.Y. 2009-10 2. We shall first take up the appeal of the assessee ITA No.640/PUN/2016 for the A.Y. 2009-10 as the standard one. 3. Briefly stated, relevant facts of the case include that the assessee is a company and is engaged in the business of dealing in industrial and laboratory chemicals, solvents, acids and general merchants and commission agents. Assessee filed the return of income on 29-09-209 declaring total income of Rs. 1,14,27,750/-. Assessee's case was reopened u/s.147 of the Act. During the A.Y. 2009-10, the A....
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.... books of account. 2. The learned CIT(A) was not justified in sustaining addition of Rs. 14,80,110/- only on the basis of presumption and surmises and without having any material to support his conclusion. 3. The above grounds of appeal are without prejudice to one another. 4. The appellant craves leave to amend or alter any of the above grounds or to add new grounds during the course of appeal proceedings." Grounds by Revenue: "1. Whether on the facts and in the circumstances of the case and in law, the Ld.CIT(A) is justified in deleting the additions of Rs. 41,31,123/- (Rs.1,44,612/- & Rs. 39,86,511/-) on account of non genuine purchases made by the Assessee. 2. Whether on the facts an....
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....f Rs. 98,67,398/- is disallowable. I accordingly hold that the appellant is taxable on the amount of gross profit which has arisen out of such purchases for which bills have been procured from local parties. The average rate of G.P. shown by the appellant during the preceding years is between 10% to 11%. Considering the additional benefit on account of VAT credit on these purchases a fact which has been admitted by the appellant), I consider it fair and reasonable to estimate Gross Profit at the rate of 15% on the amount of purchases of Rs. 98,67,398/-, for which admittedly bills have been procured by the appellant form nongenuine parties. Thus, the amount of Gross Profit is computed at Rs. 14,80,110/- being 15% of Rs. 98,67,398/-. The addi....
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....e appellant during the preceding years is between 10% to 12%. Considering the additional benefit on account of VAT credit on these purchases (a fact which has been admitted by the appellant), I consider it fair and reasonable to estimate Gross Profit at the rate of 15% on the amount of purchases of Rs. 50,43,126/-, for which admittedly bills have been procured by the appellant from non-genuine parties. Thus, the amount of Gross Profit is computed at Rs. 7,56,469/- being 15% of Rs. 50,43,126/-. The addition to the extent of Rs. 7,56,469/- is accordingly confirmed." 14. From the above, it is evident that assessee furnished the purchase bills and the evidences for payment to the suppliers through banking channels. Copies of the bank s....