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2013 (11) TMI 321 - AT - Income TaxAddition u/s 68 of the Income Tax Act on account of bogus creditors – Held that:- Reliance has been placed on the judgment in the identical case of Vikas Purushottamlal Gupta[2013 (11) TMI 264 - ITAT PUNE], wherein it was held that addition of the total sundry creditors under the facts and circumstances of the case will give absurd result which is not possible in the type of trade the assessee is engaged in - Argument of the learned counsel for the assessee that 3% profit may be determined on the unproved trade creditors was not sustainable - Fit case for rejection of the book results and going for estimated addition - Under similar facts and circumstances various Benches of the Tribunal are adopting net profit rate of 1% of the turnover. Considering the totality of the facts and circumstances of the case, adoption of 1% Net profit on the turnover for various assessment years will be reasonable and will meet the ends of justice.
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