2017 (9) TMI 1805

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.... Per D.T. Garasia, Judicial Member: The present appeal has been preferred by the assessee against the order dated 03.03.2017 of the Commissioner of Income Tax (Appeals) [hereinafter referred to as the CIT(A)] relevant to assessment year 2009-10. 2. The brief facts of the case are that the assessee is an individual engaged in business as dealer in office and school stationery items on wholesa....

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....e Ld. CIT(A) and the Ld. CIT(A) has applied 4% by observing as under: "4.2 In view of facts and confined to peculiarities, I find it just and reasonable inference that the appellant had the opportunity to play with the purchase price. To what extent is the only question remaining. Holding that some guesswork is inevitable in such circumstances, I find that a 4% profit rate on unverified compone....

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....be produced. Therefore, 4% on GP has been sustained by Ld. CIT(A). But the year in which the assessee is trader he has already declared the GP of 20.88% and if he is saddled with more GP then it is 34% which is a trading impossibility. No specific allegation in the statement against the assessee was recorded and no cross examination of concerned parties was allowed. Therefore, when assessee has de....

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....erred by lower authorities in their respective orders as well as cited by learned AR and DR during the course of hearing before us. From the record we found that the basis on which AO disallowed the alleged bogus purchases is the non-appearance of the suppliers before the AO to verify the purchases. In this regard we found that many Benches of ITAT and Hon'ble High Courts have held that when p....