2022 (3) TMI 652

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....appeals are similar basing on the same identical facts. Therefore, with the consent of both the parties, we proceed to hear both the appeals together and to pass a consolidated order for the sake of convenience. 3. First, we shall take up appeal in ITA No. 1454/PUN/2017 for A.Y. 2010-11. 4. Ground Nos. 1 to 3 raised by the assessee challenging the action of CIT(A) in confirming the addition made by the AO on account of purchases treating the same as hawala purchases u/s. 69C of the Act in the facts and circumstances of the case. 5. Heard both the parties and perused the material available on record. We note that the assessee is an individual declared a total income of Rs. 46,17,720/-. The AO determined the same at Rs. 84,73,270/- inter a....

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.... addition only on the pretext that there was no evidence showing the physical movement of goods purchases, in our opinion, is not correct to treat the entire purchases as bogus and gross profit should be determined at 10%. Therefore, by following the finding of Co-ordinate Bench in the case of Dilawar R. Shaikh (supra) we direct the AO to determine gross profit at 10% on such alleged purchases. Thus, the ground Nos. 1 to 3 raised by the assessee are allowed. 6. Ground Nos. 4 and 5 raised by the assessee relating to disallowance made u/s. 14A of the Act in the facts and circumstances of the case. 7. The AO held that the assessee received exempt income on account of transfer of units of mutual funds and dividend received. The AO asked asses....

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....lied on the order of authorities below. There is no dispute regarding the details of investments as on 31-03-2010 totaling to Rs. 74,25,558/- as evident in Balance sheet at Page No. 127 of the paper book be that of the chart reproduced by the CIT(A) in its order at Page No. 16 wherein it is noted that the assessee held the income of such FDs and Debt Securities as taxable. Admittedly, the AO and CIT(A) did not record the amount of exempt income earned by the assessee except making observation that the assessee earned exempt income. 9. We find the computation of income as on 31-03-2010 at Page No. 122 of the paper book wherein we note that total exempt income as claimed by the assessee is Rs. 8,62,777/- as per Annexure at Page No. 123 and e....