recorded by the assessee son in course of search operations and assessee had

Recorded by the assessee son in course of search

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recorded by the assessee son in course of search operations and assessee had not been able to show as to how estimation made by the assessing officer was arbitrary or unreasonable, addition so made by the assessing officer by rejecting the books of account was justified. 40. With respect to the addition on account of the bogus purchases, the learned DR vehemently relied upon the decision of NK proteins Ltd vs. CIT (2017 – TIOL – 23 – SC – IT), the decision of the honourable Gujarat High Court in case of NK industries Ltd vs. DCIT (2016) 72 taxmann.com 289 (Gujarat), decision of the honourable Delhi High Court in CIT vs. La Medica (2001) 117 Taxman 628 (Del), decision of the honourable Allahabad High Court in case of Shri Ganesh Rice mills vs. CIT (2007) 294 ITR 316, decision of the honourable Gujarat High Court in case of Vijay proteins Ltd vs. ACIT (2015) 58 taxmann.com 44 (Gujarat), Sanjay oilcake industries vs. CIT (2009) 316
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Agson Global Pvt. Ltd Vs. ACIT, ITA No. 3741to 3746/Del/2019 (assessee) ITA No. 5264 to 5269/Del/2019 (Revenue) (Assessment Year: 2012-13 to 2017-18) Page | 29 ITR 274 (Gujarat). The learned departmental representative also referred to the decision of the coordinate bench in ITA number 84 – 85/ Viz/2018 for assessment year 2012 – 0 13 and 2014 – 15 dated 17/10/2018 wherein in para number 8 it has been held that where the assessee is not able to explain the details of unexplained purchases, quantity of the purchases and also the details of unaccounted sales and the source of the unrecorded purchases, the assessee has failed to prove that he made unaccounted purchases and therefore the addition cannot be made on the basis of the gross profit but complete addition of the unaccounted purchases should be made. 41. As per ground number 1 of the appeal of the AO, With respect to the order of the learned CIT – A in rejecting partially the books of accounts and then determining the profit at the rate of gross profit earned by the assessee from other parties with respect to the profit earned on alleged bogus transaction, he submitted that the learned assessing officer has made the addition correctly and therefore the approach of the learned CIT – A in adopting the gross profit rate of 16.20% compared to the 25% disallowance made by the learned assessing officer. He therefore submitted that in the grounds of appeal of the learned assessing officer, it challenges the order of the learned CIT – A in reducing the addition made by the learned assessing officer by deriving the gross profit as unaccounted income of the assessee by applying the rate applicable to untainted parties. He therefore submitted that the order of the learned assessing officer with respect to the alleged purchases should be upheld. 42. The learned authorised representative in rejoinder submitted a point wise rebuttal on the issue raised by the learned departmental representative.
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