2024 (8) TMI 1617

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....r the Revenue : Shri Manoj Kumar Sinha, Sr. DR ORDER PER : NARENDER KUMAR CHOUDHRY, JUDICIAL MEMBER: These appeals have been preferred by the Revenue against the order even dated 29.01.2024, impugned herein, passed by the Ld. Commissioner of Income Tax (Appeals) (in short Ld. Commissioner) under section 250 of the Income Tax Act, 1961 (in short 'the Act') for the A.Y. 2017-18 & 2018-19. ....

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....ansactions should not be taken as nongenuine and disallowed. In response the Assessee filed its reply along with ledger account; check payment etc., however, failed to produce other documents such as delivery challenges, lorry receipts, transportation details etc. The AO therefore by considering the peculiar fact that the aforesaid parties have admitted in front of DDIT (Inv.), Mumbai that they....

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....chases made, against which the Revenue Department is in appeal before us. 5. The Ld. D.R. at the outset submitted that the Ld. Commissioner wrongly interpreted the finding of the AO that the AO has added 10% on account of sales tax and another 2.5% on the profit margin. But it was not the intention of the AO in making the addition @ 12.5%. May be the AO has wrongly recorded in para-no.6 of the ....

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....7. We have given thoughtful considerations to the peculiar facts and circumstances of the case. We observe from the assessment order that the AO consciously recorded that malpractice of bogus purchases is mainly to save 10% of sales tax etc. and the profit margin in the industry in which the Assessee is working/dealing is 2.5% only, whereas the Ld. Commissioner has also consciously recorded the fa....