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2017 (10) TMI 1255 - ITAT MUMBAIAddition u/s 69C - addition at the rate of 15% of gross bogus purchases - purchases from hawala parties - Held that:- Admittedly, in such type of cases, there is no option but to estimate the profit which depends upon the subjective approach of an individual and the material facts available on record. Commissioner of Income Tax (Appeal) considered the factual matrix and the order of Assessment Year 2009-10, wherein, disallowance was confirmed at the rate of 5.08% of the alleged purchases, restricted the disallowance at the rate of 15% of the bogus purchases amounting to ₹ 55,98,500/-. As per the assessee, the assessee has already made declaration the gross profit at the rate of 20.49%. Admittedly, in such type of cases, there is no option but to estimate the gross profit. Thus, considering the totality of facts, to further plug the leakage of Revenue, we direct the Ld. Assessing Officer to restrict the disallowance @ 16% (as agreed by the ld. counsel for the assessee) in place of 15% restricted by the Ld. Commissioner of Income Tax (Appeal). Thus, the appeal of the Revenue is partly allowed.
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