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2019 (9) TMI 1256 - ITAT MUMBAIBogus purchases u/s 69C - profit percentage at the rate of 25% on bogus purchases by CIT-A - HELD THAT:- CIT(A) has restricted the profit rate at the rate of 25%, which according to us is on higher side going by the nature of business of the assessee i.e. trading in Iron, Steel & cement on semi-wholesale basis. We are in agreement with the contentions raised by the assessee before CIT(A) and according to us a profit rate of 25% is on higher side by going through the nature of the business of the assessee and the fact that the business of Iron, Steel & Cement does not give higher profits. Even, the assessee has paid the VAT element on the bogus purchases. Hence, we direct the AO to recompute the income after applying profit rate at the rate of 8% of the bogus purchases and compute the income accordingly. The appeal of the assessee is partly allowed.
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