2024 (6) TMI 1286

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....ct, 1961 (the act) was partly allowed. Therefore, the assessing officer is aggrieved and is in appeal before us. 2. The solitary ground of the appeal of the learned assessing officer is that the learned CIT - A has erred in restricting the disallowance to 25% of purchases instead of hundred percent of purchases of Rs. 777,174/- from non-existent vendor's by not following the decision of the honourable Gujarat High Court in case of NK proteins Ltd versus DCIT where in it has been held that once the purchases are bogus, the addition should be made on the entire purchases and not only the profit embedded in such purchases against which the specially petition filed by the assessee was dismissed by the honourable Supreme Court in (2017) 292 CTR....

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....d by the assessee as well as transported by way of a sale to other parties. Accordingly, the assessment order was passed under section 143 read with section 147 of the act on 19/2/2015 wherein the 100 % percent of the bogus purchases of Rs. 777,174/- was added to the total income of the assessee under section 69C of the act to the returned income of Rs. 202,640/- and the total income was assessed at Rs. 979,814/-. 4. The assessee aggrieved with the assessment order preferred an appeal before the learned CIT A, who passed an appellate order on 29/5/2023 wherein he is following the decision of the honourable Gujarat High Court in case of Vijay proteins Ltd versus ACIT restricted the addition to the extent of 25% of bogus purchases. The learn....