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2019 (2) TMI 1690 - ITAT MUMBAIBogus purchases - GP estimation - HELD THAT:- AO has gone routine exercise by issuing 133(6) notices to ascertain without carrying out further investigation to know exact nature of the transaction between the assessee and said firms when the assessee has filed sufficient materials including purchase bills. Therefore, it is difficult to accept the version of the AO that purchases from above parties are bogus in nature which are not supported by valid evidence. The only option left for the authorities is to settle the controversy by estimating income of the assessee from these kind of transactions. As in assessee’s own case [2017 (4) TMI 1465 - ITAT MUMBAI] has considered identical facts in the light of DGIT(Inv.) report and also the statement of Shri Rajendra Jain given during course of search, to arrive at a conclusion that 12.5% profit on alleged bogus purchases is reasonable and would meet ends of justice. For the year under consideration, the facts are identical and even parties from whom purchases were made by the assessee for AY 2007-08 and for the present assessment year are one and the same. Under these facts, it is difficult to take different view from the view already taken by the Co-ordinate Bench. Further, Tribunal had taken a consistent view in case of alleged bogus purchases and depending upon the facts of each case has directed the AO to estimate profit percentage of 5 to 12.5% on alleged bogus purchases - profit percentage applied by the Ld. CIT(A) on alleged bogus purchases appears to be less and hence direct the AO to consistent with view taken by the Co-ordinate Bench, we adopt 12.5% net profit on alleged bogus purchases.- Appeal filed by the Revenue is partly allowed.
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