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2018 (9) TMI 1981 - AT - Income TaxBogus purchases - addition was restricted to 12.5% of the purchases by CIT-A - contention of the learned Authorised Representative that the assessee has shown a gross profit rate of 3% on the purchases made and has also paid VAT @ 4% on such purchases. Therefore, even if the profit rate of 12.5% is adopted, the gross profit already shown by the assessee as well as VAT paid should be reduced from such profit rate adopted by the Departmental Authorities and the balance amount may be added - HELD THAT:- Considering the fact that the assessee has shown gross profit rate of 3% and has also paid VAT on such purchases @ 4%, direct the Assessing Officer to restrict the addition to 5.5% of the nongenuine purchases of ₹ 1,24,73,405 and delete the balance addition. This ground is partly allowed.
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