TaxTMI 
TaxTMI 
2021 (12) TMI 934
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.... Act, 1961 [hereinafter referred as 'the Act'], dated 23.03.2016. 2. Grounds of appeal raised by the Revenue are as follows: "1. On the facts and circumstances of the case and in law, the CIT(A) has erred in restricting the addition made by the AO on account of disallowance of non-genuine purchases from Rs. 2,49,88,345/- to Rs. 12,49,417/-. 2. Whether, on facts and in law the ld CIT (A) was justified in partly allowing the appeal of the assessee and estimating disallowance at Rs. 12,49,417/- @5 % of Rs. 2,49,88,345/- despite of the fact the AO has made the addition of Rs. 2,49,88,345/- and 25% is due as per the Vijay Proteins case decided by Hon'ble Supreme Court of India. 3. Whether, on facts and in law th....
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....ished as to how much rough is used for manufacturing diamonds. It is also not verifiable as to how much carat wise diamonds are manufactured. Therefore, assessing officer made addition of Rs. 2,49,88,345/-. 4. Aggrieved by the order of Assessing Officer, the assessee carried the matter in appeal before the ld.CIT(A), who has restricted the addition to 5% of unverifiable purchases, by following the judgment of Hon'ble Gujarat High Court in the case of Mayank Diamond Pvt. Ltd. reported in 2014 (11) TMI 812 (Guj.). 5. Aggrieved, the Revenue is in appeal before us. 6. We have heard both the parties and carefully gone through the submission put forth on behalf of the assessee along with the documents furnished and the case laws reli....
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.... AO while making additions of 100%, of disputed purchases solely relied on the report of the investigation wing Mumbai. No independent investigation was carried by the AO. The AO has not disputed the sale of the assessee. The AO made no comment on the evidences furnished by the assessee. We further find that ld CIT(A), while considering the submissions of the assessee accepted the lapses on the part of the AO and noted that no sale is possible in absence of purchases. The Books of the assessee was not rejected by the AO. The ld CIT(A) on further examination of the facts and various legal submissions find that Ahmedabad Tribunal in Bholanath Poly Fab Private Limited (supra) held that in the such cases the addition of bogus purchases was sust....
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....the end of justice. 3. We have seen that during the financial year under consideration the assessee has shown total turnover of Rs. 66,09,62,458/-. The assessee has shown Gross Profit @ .78% and net Profit @ .02% (page 11 of paper Book). The assessee while filing the return of income has declared taxable income of Rs. 1,81,840/- only. We are conscious of the facts that dispute before us is only with regard of the disputed purchases of Rs, 4.34 Crore, which was shown to have purchased from the entity managed by Bhanwarlal Jain Group. During the search action on Bhanwarlal Jain no stock of goods/ material was found to the investigation party. Bhanwarlal Jain while filing return of income has offered commission income (entry provider)....