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2018 (11) TMI 1958 - AT - Income TaxRevision u/s 263 against reopening of assessment - Estimation on income on bogus purchases - HELD THAT:- We find from the records that while passing order u/s 143(3) r.w.s. 147 of the I.T. Act, the AO has considered the factual position with regard to making purchases from different persons. From the records, we found that completed assessment was reopened on the ground of information from the investigation wing that assessee had made purchases from alleged bogus supplier. Since the reopening itself was for this purpose only the AO after having detailed inquiry and investigation found that corresponding sales have been duly accounted for in the books, accordingly entire purchases could not be added and he estimated extra profit of 6% on such purchases and added the same in assessee’s income. We are of the considered view that order passed by Ld. CIT u/s 263 of IT. Act is not correct as Ld. CIT has not discussed the factual details passed in the order in the case of N. K. Proteins Ltd. [2017 (1) TMI 1090 - SC ORDER] and N.K. Industries [2016 (6) TMI 1139 - GUJARAT HIGH COURT], wherein in these cases, 100% of additions were made. Therefore in the case of the assessee, AO had not made 100% addition, whereas after going through the aforementioned different orders passed by different courts, had made additions @ 6%. We have also considered the various decisions of the judicial authorities, wherein under identical facts and circumstances, 2% additions on bogus purchases were made. Since the additions in such type of case depend on the facts of each case, therefore provisions of section 263 could not have been invoked by the Ld. CIT. Decided in favour of assessee.
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