TaxTMI 
TaxTMI 
2020 (1) TMI 1144
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....he substantial question of law, as proposed by the Revenue arising in this Tax Appeal, reads thus: "Whether the Appellate Tribunal has erred in law and on the facts in reversing the decision of CIT(A) and restricting the disallowance of Rs. 63,44,324/- made on account of bogus purchases to the extent of 5% of the bogus purchases?" 3. It appears from the materials on record that the assessee filed his original return of income declaring total income at Rs. 18,50,640/-. The return was proposed u/s 143(1) of the Act. Later, the case was re-opened by issuance of notice dated 06.05.2014 under Section 148 of the Act. 4. The case was re-opened on the basis of the information received from DGIT (Investigation), Mumbai, which was gathered dur....
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....n the decision rendered in ITA No.313/Ahd/2015 in the assessee's case for the A.Y.2009-10 and affirmed the addition made by the assessing officer. 8. The Appellate Tribunal allowed the appeal of the assessee, restricting the dis-allowance to the extent of 5% of the total bogus purchases. The Revenue, being dis-satisfied by such order, has come up before this Court with the present Appeal. 9. Having heard the learned Senior Advocate Mr.M.R.Bhatt appearing for the Revenue and having gone through the materials on record, we take notice of the fact that the Appellate Tribunal has relied upon its earlier order, so far as the A.Y.2009-10 is concerned. Paragraph No.7 of the said order has been reproduced in the impugned order, which reads thus....
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....view of the facts recorded, it is difficult to dispute the quantitative aspects of the purchases made. This leaves us to the limited aspect of pricing of alleged bogus purchase. Having regard to the facts and circumstances of the case and more particularly in view of profits already declared on alleged bogus purchases in the vicinity of 7%, we are of the view that an estimated disallowance of 5% alleged bogus purchases over and above the profits already declared would cover possible suppression in profit and will balance the equity. Such estimation would also be in tune with the judgment of Hon'ble Gujarat High Court in Gujarat Ambuja Exports (Supra). Accordingly, we direct the AO to restrict the estimated disallowance to Rs. 6,42,657/- on ....