Bogus Purchase- Addition by GP rate of 8% on bogus purchases justified

The Commissioner (Appeals) as well as Tribunal both have accepted the assessee’s contention that adding the entire amount of bogus purchases would give a completely distorted figure and the gross profit would be higher than the total turnover. Such bogus purchases were for off-setting the purchases from producers and agriculturists directly who would not have the billing facility. Only question seriously paused before us was, was the Tribunal justified in adopting the gross profit rate of 8% as against 25% adopted by the Commissioner (Appeals)? When additions are made on the basis of gross p...