2023 (9) TMI 1666

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....sed by the Income Tax Appellate Tribunal, Surat (for short 'the Tribunal') raising following substantial questions of law: (i) "Whether on the facts and circumstances of the case and in law, the Ld. Tribunal was justified in estimating the addition in respect of bogus purchases at rate of 6% of such purchases as against disallowance made by the AO at the rate of 100% of such purchases amounting to Rs. 12,88,47,024/- ignoring the facts that these purchases are sham transactions fabricated through bogus paper concerns of Rajendra Jain Group and family entities which were engaged in providing accommodation entries?" (ii) Whether on the facts and circumstances of the case and in law, the Ld. Tribunal was justified in estimatin....

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.... Surat, the Revenue preferred the appeal before the Tribunal, Surat which by order dated 19.09.2022 partly allowed the appeal of the Revenue and restricted the disallowance at the rate of 6% of the disputed purchases. Revenue has therefore, preferred this appeal. 4. Having heard the learned advocates for both the sides and having perused the impugned orders, it appears that grievance of the assessee before the respondent-authority was that the assessee had submitted bills and vouchers, stock registers and the transactions were through banking channels and therefore addition at the rate of 5% sustained by the CIT(A) should be deleted whereas the main grievance of the revenue was that since all the purchases were bogus and in the nature of....

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....o stock of goods/material was found to the investigation party. Bhanwarlal Jain while filing return of income has offered commission income (entry provider). Before us, the Ld. CIT-DR for the revenue vehemently submitted that the ratio of decision of Hon'ble Gujarat High Court in Mayank Diamond Private Limited (supra) is directly applicable on the facts of the present case. We find that in Mayank Diamonds the Hon'ble High Court restricted the additions to 5% of GP. We have seen that in Mayank Diamonds P Ltd (supra), the assessee had declared GP @ 1.03% on turnover of Rs 1.86 Crore. The disputed transaction in the said case was Rs. 1.68 Crore. However, in the present case the assessee has declared the GP @ 0.78%. It is settled law th....