Held that the assessee had made bogus purchases and in turn it provided savings to the assessee in non-payment of State taxes. The Assessing Officer had not doubted the sales and hence the order of the Commissioner (Appeals) on this disputed issue was to be set aside and the Assessing Officer was directed to estimate the income at 12.5 per cent. on unapproved/bogus purchases.  As regards special deduction  in respect industrial undertaking, matter is remanded.  (AY.2010-11).