2021 (6) TMI 269

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....thorized Representative was present. No adjournment application was filed by the assesse. Therefore, the submissions of the Ld. DR were recorded and cases were heard on merits. First, we would take up Revenue's appeal in ITA No.40/PUN/2017 for the assessment year 2009-10 for adjudication. ITA No.40/PUN/2017 ( By Revenue) A.Y.2009-10 3. In ITA No.40/PUN/2017, the Revenue has raised following grounds of appeal: "1. Whether on the facts and in the circumstances of the case the CIT(A) was justified in to restrict the addition to Rs. 16,95,879/- (10% of Rs. 1,69,58,793/-) though AO noticed that assessee shown purchases in the books of accounts and whereas no material against the purchase bills had been received in reality. ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....at an information in a DVD containing information about unearthing a racket involving more than 1935 Hawala Operators who have issued fake purchase bills to more than 37000 business entities including the assesse was received from the Sales Tax Department, the assesse was one of the beneficiary claimed to have been purchased the goods to the extent of Rs. 1,69,58,793/- from a hawala operator and shown in the books of account and whereas, no material against the purchase bills had been received in reality. The Assessing Officer had alleged that the assesse company had purchased 411.825 MT of goods from parties declared by Sales Tax as hawala parties and, accordingly, he made addition of Rs. 1,69,58,793/- on account of following alleged hawal....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ddition should be made to the extent of difference between gross profit rate on genuine purchases and gross profit rate of bogus purchases. For example, if the GP percentage of genuine purchases comes to 8% whereas GP percentage of bogus purchases comes to 10%, then 2% of bogus purchases can be added to the income of the assessee. 7. Reverting to the facts of the present case and taking guidance from the said judgment of the Hon'ble Bombay High Court in the case of Pr.CIT Vs. Mohommad Haji Adam (supra.), we set aside the order of the Ld. CIT(Appeal) and restore the matter back to the file of the Assessing Officer for undertaking this exercise and finding out the excess gross profit rate earned from bogus purchases and then making the....