2024 (4) TMI 1117

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... the case and in law, the Ld. CIT(A) has erred in reducing gross profit @ 12,5% as against the 100% addition made by the Assessing office on account of bogus purchases of Rs. 2,34,54,210/-, by ignoring the fact that the DGIT (Inv.), had proved beyond doubt that Mr. Bhawarlal Jain & his Group concerns were involved in providing accommodation entry of sales & purchases without actual delivery of goods and the assessee was one of the beneficiary who accepting accommodation entries for the purchases of goods? 2. Whether on the facts and in the circumstances of the case and in law, the Ld. CIT(A) has erred in reducing gross profit @ 12,5% as against the 100% addition made by the Assessing office on account of bogus purchases of Rs. 2,34,54,210....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... Ltd. dated 16-1-2017, which is on the similar issue of bogus purchases and when the Hon'ble Apex Court order was already the law of the land when the Ld CIT(A) has pronounced its order on 29.08.2023. 6 "Whether on the facts and in the circumstances of the case and in law, the Ld. CIT(A) has erred in reducing gross profit @ 12,5% as against the 100% addition made by the Assessing office on account of bogus purchases of Rs. 4,65,85,141/-, without appreciating the fact that in the case of Swetamber Steels Ltd.(supra), the Hon'ble ITAT, Ahmadabad had confirmed the disallowance of the bogus purchase in entirety stating that the purchases shown from respective parties were found non- genuine and the decision of the ITAT was upheld b&ya....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....rdingly, the learned assessing officer held that purchases made from the entities controlled by accommodation entry provider are just shown as purchases to cover up the grey market purchases. Accordingly the entire purchases of Rs. 46,585,141/- was disallowed. When the matter reached the learned CIT - A, he directed the AO to restrict the addition to the extent of 12.5% of the non genuine purchases instead of disallowing hundred percent of the purchases. 05. Against the appellate order both the parties were in appeal. The assessee was contesting the addition of 12.5% confirmed by the learned CIT - A. This appeal was in ITA number 3625/M/2023 which was disposed of by order dated 20/3/2024 wherein the coordinate bench restricted the addition....