PCIT Vs Rajesh Suresh Chopra (Gujarat High Court)
Gujarat High Court held that entire addition towards bogus purchases not justifiable accordingly, addition at the rate of 6% of the bogus purchases is fair and reasonable. Accordingly, appeal of revenue dismissed.
Facts- The return of the assessee was processed u/s. 143(1) of the Act. The Assessment order u/s. 143(3) read with Section 147 of the Act was passed after making addition of Rs.116,49,88,059/- on account of accommodation entry of purchases and Rs.2,32,99,761/- on account of unaccounted cash paid as commission of such accommodation entry at the rate of 2% of the amount of accommodation.
The Tribunal partly allowed the appeal of the assessee and restricted the addition made by the Assessment Officer of 100% to 6% of the bogus purchases. Being aggrieved, revenue has preferred the present appeal.
Conclusion- Held that the issue is no more res-integra pursuant to the judgment of the Coordinate Bench of this Court. The Co-ordinate Bench of this Court in case of Principal Commissioner of Income Tax Versus Pankaj K. Choudhary dated 07.03.2023 held that in respect of bogus purchases, the addition at the rate of 6% of bogus purchases is fair and reasonable.
Held that the substantial questions of law proposed by the appellant in this appeal stands already answered and therefore, no question of law much less any substantial question of law can be said to have arisen in the facts of the present case. The appeal is accordingly dismissed. No orders as to cost.
