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2018 (4) TMI 1892 - AT - Income TaxEstimation of income - bogus purchases - HELD THAT:- As disclosed by the assessee is at 8.55% which is as per the market rate of similar diamond traders and also similar to as disclosed by the assessee in earlier years - It is also a fact that the assessee has failed to substantiate the purchases by not producing the parties in question and admission of the party that they have indulged in providing bogus accommodation entries. Some cases cited by the Tribunal of Mumbai Tribunal has adopted 2% net profit rate. Considering the net profit of 5% as the average rate of the industry as observed by the Hon`ble Jurisdictional High Court and following the judicial pronouncements by the Co-ordinate Bench of Tribunals and the decision in the case of Mayank Diamonds Pvt. Ltd. v. ITO[2014 (11) TMI 812 - GUJARAT HIGH COURT] we deem it fit to restrict the addition to 5% of total bogus purchases.
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