Dismissing the appeal of the revenue the Tribunal held that ; admittedly, it was a bogus purchase but the assessee had produced complete reconciliation of purchase and sales and stock tally. Even the payments were by account payee cheque to the party. Even the Assessing Officer had not doubted the consumption of material purchased and it meant that the assessee had obtained bogus bill from the party and actually purchased material from grey market at a lesser price and also to avoid value added tax payment. The CIT(A) had rightly applied the profit rate at the rate of 12.5 per cent. of bogus purchases. ( AY. 2009-10)