2024 (7) TMI 1164

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....61 (hereinafter referred to as the "Act"), dated 17.03.2016 for Assessment Year 2010-11. 2. Grounds taken by the assessee are reproduced as under: "1. (a) On facts and circumstances of the case and in law, Ll. CIT(A) erred in dismissing the appeal and sustaining the addition as it is a proven fact by various judicial authorities that sales without purchases is not possible for a trader. (b) The CTT (A) erred in sustaining to 25% addition without appreciating the understated vital facts that the purchases are duly supported with necessary documentary evidences including quantitative tally of purchases and sales and there appears no sign of it being bogus and the learned officer has not given a fair opportunity of putting forward the fa....

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....documents for purchases made from the 20 parties along with supporting documents for corresponding sales affected by the assessee. Assessee furnished certain details in compliance to the notices issued by the ld. Assessing Officer. Ld. Assessing Officer concluded that it is only the profit embedded in the alleged bogus purchase transaction which needs to be taxed. He thus, arrived at a percentage of 25% of the total non-genuine purchases to add it to the total income of the assessee as profit earned from such purchases which amounted to Rs.50,05,968/-. Assessment was thus completed u/s. 143(3) r.w.s. 147 of the Act. Aggrieved, assessee went in appeal before the ld. CIT(A), who sustained the additions so made by applying 25% of the total non....