Tribunal held that AO cannot blow hot & cold by disallowing the purchases from a party as bogus while treating sales to same party as genuine. Addition is held to be not justified . Percentage of addition to gross profit is held to be Considered NK Proteins Ltd v CIT (2017 TIOL l 23 –SC-IT), nk Industries Ltd v DCIT ( 2016) 72 taxann.com 628 (Delhi) CIT v .La Medica ( 2001) 117 Taxman 628 (Delhi )(HC) Ganesh Rice Mills v CIT ( 2007) 294 ITR316 (All) (HC), Vijay Proteines Ltd v. ACIT (2015) 58 taxmann.com 44 (Guj) (HC) Sanjay Oil cake Industries Ltd v.ACIT (2009) 316 ITR 274 (Guj) (HC) ( ITA No. 3741to 3746/Del/2019 (assessee) ITA No. 5264 to 5269/Del/2019 (Revenue) , dt. 31.10.2019) (AY. 2012-13 to 2017-18)
Agson Global Pvt. Ltd. v. ACIT ( 2019) 76 ITR 504 (Delhi)(Trib),www.itatonline.org
S. 69C : Unexplained expenditure – Bogus purchases – AO cannot blow hot & cold by disallowing the purchases from a party as bogus while treating sales to same party as genuine-Entire purchases cannot be disallowed – Percentage of addition to gross profit is held to be justified.