2023 (7) TMI 514

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....Kinjal Patel, Ms. Shreya Singhi and Ms. Sakshi Kapadia   For the Respondent : Mr. Vipul Joshi a/w Ms. Simoni Chouhan   P.C. 1. Appeal impugns an order dated 17th February 2017 passed by the Income Tax Appellate Tribunal (ITAT) by which the ITAT deleted the addition made by CIT(A) and allowed the Appeal filed by the Assessee. 2. Assessee was engaged in the business of importin....

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....proceeding, the Assessing Officer (AO) added the amount of Rs. 4.67 crores to the income of the assessee on the basis of the statement made by the partner which statement, as noted earlier had been retracted. There was no further corroborative material or incriminating material found by the survey team. The books of accounts were also duly maintained by assessee with all records in the form of sto....

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.... a part of the purchase of packaging material have to be disallowed and disallowed 7% of the purchases. Paragraph 53 and 54 of order of CIT(A) read as under: "53. Once the sales of the appellant firm, which cannot be made without the packaging materials, are not questioned by the AO and are accepted as genuine, then there is no question of any purchases made by the appellant being termed ....

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....o reduce the profits resulting in lowering down of the gross profits. Since the appellant firm is not trading in the packaging materials, therefore, no gross profits rate theory can be applied to the purchase of such packaging materials. In such a situation the only way left would be to disallow part of such purchases of packaging materials. It would be fair and just, if out of the total the packa....